Standard Chartered’s project could see real world assets (RWA) represented on-chain reach $2 trillion by 2028.
The bank expects tokenized RWA to expand rapidly in the coming years. This is driven by strong demand for institutional adoption, infrastructure improvements and more efficient capital markets.
The bank expects significant growth in tokenized funds, fixed income, private credit and alternative assets. This is especially true in areas where traditional markets face problems with settlement speed and liquidity.
Tokenization could yield “trillions of dollars”
black rock CEO Larry Fink said tokenization is a fundamental change in the way financial markets operate. “The next generation of markets, the next generation of securities, is the tokenization of securities,” he said.
According to a recent analysis, Binance Tokenization claims to be a turning point for the cryptocurrency industry. The exchange says tokenized assets can be used as collateral across trading, lending, and decentralized finance platforms, improving capital efficiency.
Crypto industry leaders, including Changpeng Zhao, said tokenization could unlock “trillions of dollars” of previously illiquid value. Brian Armstrong said, “Everything that can be tokenized will be tokenized.”
Ethereum co-founder Vitalik Buterin said blockchain systems have the most value when they represent real-world economic activity, rather than being a purely speculative vehicle.
Banks and exchanges build a shared infrastructure. standard chartered cooperated with black rock and OKX About a framework that allows tokenized funds to be used as collateral.
Tokenization has the potential to lower the barrier to entry for retail investors. This is possible by allowing for fractional ownership of assets such as private credit funds, government securities, and real estate-related products. However, access is highly dependent on the development of regulatory frameworks and platforms, which remain uneven across jurisdictions.
Most analysts expect tokenization to evolve alongside TradFi, rather than replacing it. Banks are likely to maintain a central role due to regulatory relationships and institutional trust, while blockchain networks will gradually take on more payment and issuance functions.
Experts expect the adoption of tokenization to be gradually rolled out across regions and markets.
