Tokenized real-world assets (RWAs) are projected to achieve a total value of $2 trillion within the next three years as global capital and payments transition to more efficient blockchain systems, as indicated by investment bank Standard Chartered.
The bank noted in a Thursday report released to Cointelegraph that the “trustless” framework of decentralized finance (DeFi) is set to challenge the supremacy of traditional financial (TradFi) systems that are governed by centralized authorities.
The increasing adoption of DeFi in transactions and investments could elevate non-stablecoin tokenized RWAs to a market capitalization of $2 trillion by 2028, according to the investment bank’s forecast.
Of this anticipated $2 trillion, $750 billion is expected to be funneled into money-market funds, another $750 billion into tokenized US equities, $250 billion into tokenized US investment vehicles, and a further $250 billion into “less liquid” areas of private equity, such as commodities, corporate debt, and tokenized real estate.
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“The liquidity of stablecoins and DeFi banking are crucial prerequisites for the swift expansion of tokenized RWAs,” stated Geoff Kendrick, Standard Chartered’s global head of digital assets research, who added:
“We anticipate exponential growth in RWAs in the years ahead.”
Achieving a $2 trillion market cap would signify over a 57-fold increase for RWAs in the next three years from their current cumulative value of $35 billion, as per data from RWA.xyz.
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Stablecoins propelling DeFi’s self-sustaining growth cycle
The total supply of stablecoins reached a new peak of over $300 billion on Oct. 3, reflecting a 46.8% growth rate year-to-date.
Kendrick stated that the expansion of stablecoins is bolstering the wider DeFi ecosystem.
“In DeFi, liquidity generates new products, and new products generate additional liquidity,” he remarked. “We believe a self-sustaining cycle of DeFi growth has commenced.”
Despite the encouraging outlook, Standard Chartered emphasized that regulatory uncertainty remains the most significant risk to the RWA sector. The report cautioned that progress could be hindered if the Trump administration does not establish comprehensive crypto regulations prior to the 2026 midterm elections.
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