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Independent Analysis · Dubai

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Tokenized Assets on the Rise: Standard Chartered Predicts $2 Trillion RWA Market by 2028

Standard Chartered’s latest forecast has ignited fresh conversation across the digital-asset industry. According to the bank, tokenized real-world assets (RWAs) are on track to reach a market capitalization of $2 trillion by the end of 2028, putting them on equal footing with the global stablecoin market.

The prediction highlights how rapidly decentralized finance (DeFi) is evolving from a niche crypto segment into a parallel financial infrastructure. The report, authored by Geoff Kendrick, head of digital-asset research at Standard Chartered, frames the surge in stablecoin adoption as the catalyst for this shift. Stablecoins, once dismissed as tools for crypto traders, are now the liquidity backbone enabling non-bank institutions to handle payments, savings, and lending outside traditional finance.

As liquidity deepens and on-chain innovation accelerates, Standard Chartered envisions a “self-sustaining cycle of DeFi growth” — one where stablecoins, DeFi protocols, and RWAs reinforce each other. The forecast underscores an unmistakable trend: blockchain-based financial instruments are no longer speculative experiments; they’re becoming structural components of global capital markets.

However, the optimism carries a caveat. The report warns that regulatory uncertainty in the United States remains the single biggest obstacle to DeFi’s expansion. Whether policymakers deliver clarity before the 2026 midterm elections could determine whether this trillion-dollar transformation materializes on schedule.

DeFi Enters Its Expansion Era

The year 2025 marks a turning point for decentralized finance. What began as a crypto-native experiment in lending and yield farming has matured into a system capable of competing with traditional banks. Standard Chartered’s analysis places DeFi at the heart of a global transition — from centralized trust models to code-based transparency.

Stablecoins are leading that charge. Their total market capitalization has ballooned during what analysts call the “2025 stablecoin boom,” giving developers and investors the liquidity needed to build the next generation of financial products. With stablecoins such as USDC, PYUSD, and newer asset-backed tokens offering near-instant settlement and transparent reserves, DeFi platforms have gained credibility with institutions once reluctant to engage.

The shift is more than technical; it’s cultural. Non-bank financial entities now manage payments, savings, and even short-term credit flows that used to move exclusively through banks. Kendrick’s report notes that “the type of technology-driven disruption seen in other industries is now fully visible in finance.”

By enabling 24/7 global liquidity and composable services, DeFi challenges the core monopoly of traditional finance — the control of money movement. In this context, tokenized RWAs become the bridge connecting blockchain infrastructure with tangible economic value, turning assets like treasury bills, real estate, and equities into programmable instruments.

The Trillion-Dollar Forecast: RWAs Match Stablecoins

Standard Chartered projects that tokenized real-world assets will expand from roughly $35 billion today to $2 trillion by 2028. That figure would match the expected size of the global stablecoin market within the same timeframe.

The bank’s breakdown of the RWA landscape is telling:

  • $750 billion in tokenized money-market funds, reflecting institutions bringing short-term debt instruments on-chain.

  • $750 billion in tokenized listed equities, a signal that traditional securities may soon trade seamlessly across blockchains.

  • The remaining $500 billion distributed among private equity, commodities, corporate debt, and real estate, assets historically constrained by illiquidity and limited accessibility.

The underlying thesis is that liquidity breeds innovation. Once RWAs attract critical mass, they unlock secondary markets, collateral mechanisms, and new yield strategies that further expand liquidity — a feedback loop described by Kendrick as “liquidity begets new products, and new products beget new liquidity.”

DeFi platforms have already begun integrating tokenized treasuries and short-term government debt. Protocols like Ondo Finance, Maple, and Centrifuge are pioneering this convergence between on-chain efficiency and off-chain assets. As transparency and auditability improve, institutional comfort follows, laying the groundwork for a mainstream RWA economy by the end of the decade.

Stablecoins: The Foundation of the New Financial Internet

The forecast attributes much of DeFi’s growth to the stablecoin explosion of 2025. These dollar-pegged tokens act as the plumbing of on-chain finance — facilitating payments, trading, and yield generation without exposure to volatility.

Unlike speculative cryptocurrencies, stablecoins mirror fiat assets and integrate smoothly with corporate balance sheets. They serve as the missing link between traditional finance (TradFi) and decentralized systems. With faster settlement, minimal fees, and borderless reach, stablecoins are now embedded in remittance flows, e-commerce payments, and even payroll systems.

Standard Chartered’s report points out that the widespread use of stablecoins has “allowed non-bank players to assume traditional banking functions.” DeFi protocols now provide savings accounts, collateralized loans, and instant swaps — all powered by stablecoin liquidity.

That liquidity is critical to RWA adoption. When investors can easily move stable value across chains, they can also purchase, trade, and collateralize tokenized securities in real time. In this sense, stablecoins aren’t merely a product; they’re an infrastructure layer.

As regulators debate classifications — whether stablecoins should fall under banking, payment, or securities law — innovation continues at speed. The global market for asset-backed stablecoins is projected to double again before 2027, providing the fuel for the RWA expansion Standard Chartered envisions.

DeFi’s Competitive Edge Against Traditional Finance

Traditional financial systems operate on intermediaries, clearinghouses, and time delays. DeFi removes those layers. Smart contracts execute transactions automatically, governed by transparent code rather than opaque bureaucracy.

This efficiency gives DeFi an edge that even major banks acknowledge. Standard Chartered’s projection is not speculative hype but recognition of inevitable structural evolution. The bank’s research aligns with a broader institutional trend — traditional players exploring tokenization as both a cost-reduction strategy and a new profit avenue.

Tokenized government bonds, for instance, allow instant settlement and fractional ownership. Real-estate tokens open investment access to smaller participants, expanding liquidity in markets historically closed to retail investors. These innovations, once confined to crypto startups, are now pursued by major asset managers and fintech firms.

The challenge for TradFi lies in adapting risk frameworks to blockchain speed. Legacy compliance systems designed for quarterly audits and manual reconciliation struggle to monitor real-time DeFi transactions. This gap creates opportunity for hybrid models — regulated DeFi platforms that combine code-based execution with institutional-grade oversight.

By 2028, the line between DeFi and TradFi may blur entirely. What matters is not whether finance is “decentralized” but whether it is efficient, auditable, and inclusive. RWAs, stablecoins, and digital securities collectively push finance in that direction.

Regulatory Crossroads: The Biggest Risk to DeFi’s Growth

Amid optimism, Standard Chartered’s report underscores one unresolved issue — regulatory clarity, particularly in the United States.

Without clear frameworks, projects risk fragmentation or relocation to friendlier jurisdictions. The bank warns that if Washington delays comprehensive guidance beyond the 2026 midterm elections, growth could stall. Yet, the analysts call this “not our base case,” signaling confidence that pragmatic regulation will eventually prevail.

Globally, other markets are moving faster.

  • Europe’s MiCA framework is already operational, setting standards for asset tokenization, reserve audits, and investor disclosures.

  • Singapore and Hong Kong have positioned themselves as regulated DeFi hubs, granting licenses for on-chain asset trading.

  • The UAE and Bahrain are leveraging progressive policies to attract tokenization startups.

This international divergence risks creating a regulatory arbitrage scenario, where capital migrates to compliant yet innovation-friendly environments. For the U.S., the choice is strategic: embrace clarity and leadership or risk watching global financial infrastructure evolve offshore.

Kendrick’s warning is subtle but clear — DeFi will grow regardless, but the jurisdictions that provide certainty will capture the value creation.

The Road to 2028: What a $2 Trillion RWA Market Looks Like

If Standard Chartered’s forecast proves accurate, tokenization will redefine asset ownership by 2028. A $2 trillion RWA market implies that everything from corporate bonds to fine art could exist as digitally native, tradeable tokens.

Such a market would transform liquidity management for institutions, allowing fractionalized access, continuous trading, and algorithmic portfolio balancing. For retail participants, it would mean exposure to assets previously out of reach — all through wallets instead of brokerage accounts.

The implications extend beyond finance. Tokenization impacts supply-chain verification, intellectual-property management, and even carbon-credit markets. Each use case demonstrates how blockchain can move beyond speculation into real-world functionality.

However, scalability and security remain challenges. As more value migrates on-chain, vulnerabilities become costlier. Ensuring auditability and cross-chain interoperability will be critical. Partnerships between traditional custodians, auditing firms, and DeFi protocols are likely to define the next stage of development.

Ultimately, the path to a $2 trillion RWA economy is not about replacing banks but about rewriting how value moves. The infrastructure is already being built; regulation and adoption will decide how quickly it scales.

Conclusion: The Future of Finance Is Programmable

Standard Chartered’s projection captures more than numbers — it marks the convergence of technology, liquidity, and trust. DeFi’s momentum, stablecoin maturity, and tokenized assets together form the backbone of a programmable financial future.

By 2028, if tokenized RWAs match the scale of the stablecoin market, blockchain will no longer sit at the fringe of finance; it will power its core. Markets will operate in real time, with transparency replacing paperwork and smart contracts replacing middlemen.

For institutions, the message is strategic urgency: adapt now or risk irrelevance. For regulators, it is a call to action: provide clarity before innovation moves elsewhere. And for investors, it signals the beginning of finance’s most profound transition in decades — one where trust is verified on-chain, not assumed offline.

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