Standard Chartered Projects $4 Trillion in Tokenized Assets by 2028

Standard Chartered analysts estimate that tokenized assets on public blockchains could reach $4 trillion by the end of 2028. The projection is split evenly between stablecoins and tokenized real-world assets such as bonds and funds. The bank said the growth would increase demand for decentralized finance protocols that handle trading, lending and collateral management.

Geoffrey Kendrick, the bank's global head of digital assets research, stated that DeFi protocols are the infrastructure native to tokenized assets.

The report focused on composability, a feature that lets assets, exchanges, lending systems and settlement rails operate on the same shared ledger. This setup allows a tokenized asset to earn yield, back a loan and remain tradable at the same time. Traditional finance relies on separate intermediaries for custody, settlement and collateral management, which can create delays and additional costs, the report added.

U.S. regulation could accelerate the shift of assets onto blockchains. The CLARITY Act, which advanced last week in the Senate Banking Committee, was cited as a potential catalyst if passed into law later this year. The report also noted that larger DeFi protocols are becoming more resilient through audits, insurance mechanisms and professionalized governance structures.

Kendrick wrote that well-established DeFi protocols appear to be in a strong position to build the institutional links required to scale up.