TLDR
- Standard Chartered forecasts tokenized RWAs will grow to $2 trillion by 2028.
- DeFi’s expansion and stablecoin growth are key to tokenized RWAs’ rise.
- Tokenized RWAs include money-market funds, US stocks, and private equity.
- Regulatory uncertainty remains a key risk to tokenized RWAs’ growth.
The tokenized real-world asset (RWA) market is projected to grow rapidly in the coming years. According to a recent report by Standard Chartered, tokenized RWAs could hit a $2 trillion valuation by 2028. This growth is expected to parallel the expansion of the stablecoin market, further driving the decentralized finance (DeFi) ecosystem and reshaping traditional finance.
Tokenized RWAs to Surpass $2 Trillion by 2028
Standard Chartered’s report outlines a promising future for tokenized RWAs, forecasting a $2 trillion market size by 2028. This prediction marks a significant jump from the current $35 billion market value of these assets. The growth is driven by the increasing use of blockchain technology for more efficient global capital flows and payments.
The bank envisions tokenized RWAs reaching this scale as decentralized finance (DeFi) becomes more integrated into everyday financial systems. It suggests that the decentralized, trustless nature of DeFi could challenge the dominance of centralized, traditional finance (TradFi) systems. Geoff Kendrick, global head of digital assets research at Standard Chartered, emphasized that “we expect exponential growth in RWAs in the coming years.”
Source: X
The $2 trillion estimate includes various asset categories such as money-market funds, tokenized US stocks, and private equity assets, among others. Of the total, $750 billion is expected to flow into money-market funds, while another $750 billion could be directed to tokenized US stocks. Smaller segments such as private equity, tokenized real estate, and commodities are anticipated to contribute $250 billion each.
DeFi and Stablecoin Growth Fuel Expansion
The growth of tokenized RWAs is heavily tied to the success of stablecoins and their role in DeFi. Standard Chartered noted that the total supply of stablecoins recently surpassed $300 billion, marking a 46.8% increase year-to-date. This growth is seen as a key driver of DeFi’s expansion. Kendrick stated that “liquidity begets new products, and new products beget new liquidity” in the DeFi sector, describing a self-sustaining cycle of growth.
Stablecoins offer liquidity that allows new financial products and services to flourish in the decentralized ecosystem. As more capital flows into DeFi, the market for tokenized RWAs is expected to strengthen. The increasing role of stablecoins could significantly boost the adoption of tokenized real-world assets, pushing the total market to new heights.
Challenges and Regulatory Uncertainty
Despite the optimistic outlook, there are several risks that could hinder the growth of tokenized RWAs. Standard Chartered highlighted regulatory uncertainty as the biggest threat to the sector’s progress. The report pointed out that without clear regulatory frameworks, the growth of tokenized RWAs might stall, especially if governments fail to implement comprehensive crypto legislation.
In particular, the bank warned that delays in regulatory action, such as those linked to the U.S. midterm elections in 2026, could slow down progress. The regulatory environment remains one of the most significant factors in shaping the future of tokenized RWAs and DeFi.
The Path Ahead for Tokenized RWAs and DeFi
Standard Chartered’s report paints a picture of rapid growth for tokenized RWAs in the coming years. However, while the market has the potential to reach $2 trillion by 2028, regulatory hurdles remain a major concern. As stablecoins continue to drive DeFi growth, it remains to be seen how governments will approach the regulation of decentralized finance and tokenized assets.
The future of tokenized RWAs and their integration into DeFi ecosystems will depend largely on how quickly the market adapts to changing regulations and how effectively new financial products are created. The next few years will be critical in determining whether the $2 trillion forecast becomes a reality.
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