Tokenized real-world assets (RWAs) are projected to accumulate a value of $2 trillion within the next three years as more global capital and payments transition to efficient blockchain platforms, according to investment bank Standard Chartered.
The bank noted in a report released Thursday to Cointelegraph that the “trustless” framework of decentralized finance (DeFi) is set to contest the supremacy of traditional financial (TradFi) systems dominated by centralized authorities.
The increasing adoption of DeFi in payments and investments could elevate non-stablecoin tokenized RWAs to a market capitalization of $2 trillion by 2028, as predicted by the investment bank.
Of the anticipated $2 trillion, $750 billion is expected to be allocated to money-market funds, another $750 billion to tokenized US stocks, $250 billion to tokenized US funds, and an additional $250 billion into “less liquid” areas of private equity, such as commodities, corporate debt, and tokenized real estate.
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“Stablecoin liquidity and DeFi banking are crucial prerequisites for the rapid expansion of tokenized RWAs,” remarked Standard Chartered’s global head of digital assets research, Geoff Kendrick, who added:
“We anticipate exponential growth in RWAs in the forthcoming years.”
Achieving a $2 trillion market capitalization signifies over 57-fold growth 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 autonomous growth cycle
The overall stablecoin supply reached a new milestone 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 creates new products, and new products generate additional liquidity,” he noted. “We believe a self-sustaining growth cycle for DeFi has commenced.”
Despite the positive outlook, Standard Chartered highlighted that regulatory uncertainty remains the primary threat to the RWA sector. The report cautioned that progress could stall if the Trump administration does not enact comprehensive crypto legislation before the 2026 midterm elections.
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