Standard Chartered Predicts $4 Trillion Tokenized Asset Market by 2028

Standard Chartered expects tokenized assets to reach $4 trillion on blockchain networks by the end of 2028, with decentralized finance (DeFi) protocols likely to benefit the most from this growth. The bank estimates the total market will be evenly divided between stablecoins and tokenized real-world assets (RWAs), with each segment reaching around $2 trillion.

DeFi Protocols Could Gain Most From Tokenization Growth

According to Geoffrey Kendrick, Standard Chartered’s Global Head of Digital Assets Research, established DeFi platforms with strong risk management systems are in the best position to benefit as more institutional money moves onchain.

Kendrick said one major advantage of DeFi is “composability,” meaning the same asset can perform multiple functions at once. Onchain assets can earn yield, be used as collateral and remain liquid at the same time something traditional finance struggles to offer without added costs and middlemen.

Institutional Demand for Tokenized Assets Grows

The bank pointed to examples already showing this shift. BlackRock’s BUIDL fund, which manages about $2.85 billion in tokenized US Treasury assets, can generate yield, work as collateral and support other DeFi products simultaneously.

Standard Chartered also highlighted the growing role of lending protocols. Aave has grown large enough to rank alongside major US banks by assets, while Coinbase’s bitcoin lending partnership with Morpho has reached around $1.75 billion in loans across 22,000 borrowers.

Kendrick believes approval of the CLARITY Act could become a major short-term catalyst for faster adoption of tokenized finance.