Tokenization Could Drive DeFi Assets to $2.7 Trillion by 2030, Standard Chartered Predicts

Standard Chartered expects the decentralized finance (DeFi) sector to experience significant growth over the next five years, with total assets locked in DeFi protocols projected to reach $2.7 trillion by the end of 2030. The forecast represents a 37-fold increase from current levels and highlights growing institutional confidence in blockchain-based financial systems.

According to Geoff Kendrick, Head of Digital Assets Research at Standard Chartered, the expansion will be driven by both tokenized real-world assets (RWAs) and crypto-native assets moving into onchain financial applications.

Kendrick said DeFi protocols could become one of the biggest wealth-creation opportunities in the digital asset industry over the coming decade.

Currently, only about 3% of stablecoins and 10% of tokenized real-world assets are actively used within DeFi protocols. Standard Chartered expects that figure to rise sharply, projecting that around 30% of tokenized assets will be utilized in DeFi by 2030, compared with roughly 3.5% today.

The bank has previously forecast that non-stablecoin tokenized assets could grow to $2 trillion by 2028, with tokenized money market funds and US equities expected to lead adoption.

Challenges Remain Despite Strong Outlook

While the long-term outlook remains positive, industry experts caution that tokenization alone does not automatically solve liquidity challenges. Some analysts argue that issuing the same assets across different blockchains can create fragmented markets, pricing differences and trading inefficiencies.

Uniswap Could Benefit From Tokenization Boom

Standard Chartered also identified Uniswap as a potential major beneficiary of the tokenization trend. The bank believes the decentralized exchange’s established reputation, scale and experience could make it an attractive platform for traditional financial institutions entering the tokenized asset market.

Kendrick noted that if Uniswap successfully expands partnerships with traditional finance firms, its valuation could improve significantly as tokenized assets become a larger part of the global financial system.