Standard Chartered projects that real-world assets (RWAs) represented on-chain could reach $2 trillion by 2028.

The bank expects tokenized RWAs to scale fast over the coming years. This is driven by institutional adoption, better infrastructure, and stronger demand for more efficient capital markets.

The bank expects strong growth in tokenized funds, bonds, private credit, and alternative assets. This is especially true in areas where traditional markets face problems with settlement speed and liquidity.

Tokenization could unlock “trillions of dollars”

BlackRock CEO Larry Fink has described tokenization as a foundational change in how financial markets will operate. He said, “The next generation for markets, the next generation for securities, will be tokenization of securities.”

A recent analysis by Binance argues that tokenization marks a transition point for the crypto industry. The exchange says tokenized assets improve capital efficiency by allowing them to be used as collateral across trading, lending, and decentralized finance platforms.

Crypto leaders, including Changpeng Zhao, have said tokenization could unlock “trillions of dollars” in previously illiquid value. Brian Armstrong has stated that “everything that can be tokenized, will be.”

Ethereum co-founder Vitalik Buterin stated that blockchain systems achieve their greatest value when they represent real-world economic activity rather than purely speculative instruments.

Banks and exchanges build shared infrastructure. Standard Chartered has worked with BlackRock and OKX on frameworks that allow tokenized funds to be used as collateral.

Tokenization could lower barriers to entry for retail investors. This is possible by enabling fractional ownership of assets such as private credit funds, government securities, and real estate-linked instruments. However, access will depend heavily on regulatory frameworks and platform development, which remain uneven across jurisdictions.

Most analysts expect tokenization to evolve alongside TradFi rather than replace it. Banks are likely to retain central roles due to regulatory relationships and institutional trust, while blockchain networks gradually take on more settlement and issuance functions.

Experts expect tokenization adoption to unfold gradually across regions and markets.