Tokenization Market Set to Hit $2 Trillion by 2028, Says Standard Chartered

Standard Chartered Bank has projected a significant rise in the market value of tokenized real-world assets, estimating it could grow from approximately $35 billion today to nearly $2 trillion by 2028. This forecast excludes stablecoins and highlights the increasing disruption of traditional finance by decentralized finance (DeFi).

In a note released on Thursday, Geoffrey Kendrick, the bank’s head of digital assets research, stated that the anticipated growth is largely driven by the popularity of stablecoins. Kendrick emphasized the transformative potential of tokenization, which enables traditional asset classes, such as money market funds and equities, to operate on blockchain platforms.

The bank’s analysis indicates that Ethereum will play a crucial role in this expansion, as Kendrick believes it will host the majority of on-chain activity. He pointed out that Ethereum’s network has maintained stability for over a decade without a single mainnet outage, which he considers a significant advantage over competing blockchains. According to Kendrick, factors like speed and lower costs on alternative platforms are less important when compared to Ethereum’s reliability.

Market Segments Driving Growth

Standard Chartered’s projections suggest that both tokenized money market funds and listed equities could each account for approximately $750 billion of the projected $2 trillion market. The remaining value is expected to come from assets such as private equity, commodities, corporate debt, and real estate.

Kendrick noted that the surge in stablecoin adoption, particularly anticipated in 2025, has transformed DeFi from a niche sector into a mainstream financial ecosystem. This shift allows non-bank entities to manage payments and savings, traditionally controlled by banks. He highlighted lending and the tokenization of real-world assets as two areas where DeFi protocols could significantly challenge conventional financial systems.

The report also pointed out that the increasing use of stablecoins in developed markets has enhanced on-chain liquidity, fostering innovation across DeFi services, particularly in lending and borrowing. Kendrick explained that stablecoins have established essential preconditions for broader DeFi expansion, including heightened public awareness and increased on-chain activity.

Regulatory Considerations

Despite this optimistic outlook, Standard Chartered has expressed caution regarding potential risks, particularly in relation to regulatory frameworks in the United States. The bank warned that if clear guidelines are not established prior to the 2026 midterm elections, it could pose challenges for market growth. However, it does not consider this scenario its base case.

In summary, Standard Chartered’s insights underscore a promising trajectory for the tokenization market, with Ethereum positioned as a leading platform amid evolving financial landscapes. As traditional finance continues to adapt to technological advancements, the implications of these changes will likely be significant for both investors and institutions.