Standard Chartered Projects Tokenized Assets to Reach $4 Trillion by 2028

Standard Chartered projects that tokenized assets will reach $4 trillion by 2028, split evenly between non-stablecoin assets and stablecoins. The bank states that decentralized finance protocols, not Ethereum or Solana, will capture most of the growth.

Current tokenized assets stand at $34 billion, while the stablecoin market cap is $318 billion. Standard Chartered attributes the projected expansion to composability on blockchain ledgers, which enables instant settlement, 24-hour trading, and permissionless issuance.

A single asset could serve multiple functions simultaneously under this model, according to the bank. BlackRock's BUIDL tokenized U.S. Treasury money-market fund illustrates the approach by trading continuously and earning yield while acting as collateral on lending protocols.

The Clarity Act, which cleared the Senate Banking Committee last week, could accelerate adoption if enacted. Standard Chartered says higher transaction volume would flow to scalable decentralized finance protocols and potentially lift their token prices.

The forecast follows more than $600 million in losses from decentralized finance exploits last month. Standard Chartered notes that industry participants covered shortfalls after a $292 million exploit at KelpDAO, restoring funds to the largest affected protocol.