Standard Chartered Predicts $2 Trillion Tokenized RWA Market by 2028

Investment bank Standard Chartered forecasts a substantial expansion in the tokenized real-world assets (RWAs) market over the coming years. The bank anticipates the market to reach a cumulative value of $2 trillion by 2028. This growth is primarily attributed to the increasing adoption of decentralized finance (DeFi) and the broader integration of blockchain technology into global payments and investment systems.

DeFi as a Catalyst for RWA Growth

In a report released Thursday, Standard Chartered highlighted that the “trustless” architecture of DeFi is poised to challenge the traditional dominance of centralized financial (TradFi) institutions. The rising utilization of DeFi in payments and investments is expected to propel the market capitalization of non-stablecoin tokenized RWAs to an impressive $2 trillion by 2028.

Projected Investment Allocation

Of the projected $2 trillion, Standard Chartered estimates that $750 billion will be allocated to money-market funds, another $750 billion to tokenized US stocks, $250 billion to tokenized US funds, and a further $250 billion to “less liquid” segments within private equity, including commodities, corporate debt, and tokenized real estate.

The Role of Stablecoins

Geoff Kendrick, Standard Chartered’s global head of digital assets research, emphasized the critical role of stablecoin liquidity and DeFi banking in facilitating the rapid expansion of tokenized RWAs. “We expect exponential growth in RWAs in the coming years,” he stated.

Significant Growth Compared to Current State

Reaching a $2 trillion market capitalization would represent over a 57-fold increase for RWAs over the next three years, compared to their current cumulative value of $35 billion, according to data from RWA.xyz.

Stablecoins Fueling DeFi's Growth Cycle

The total stablecoin supply reached a new high of over $300 billion on October 3rd, reflecting a year-to-date growth rate of 46.8%. Kendrick noted that the expansion of stablecoins reinforces the broader DeFi ecosystem.

Regulatory Uncertainty Remains a Key Challenge

Despite the optimistic outlook, Standard Chartered acknowledged that regulatory uncertainty remains a significant threat to the RWA sector. The report cautioned that progress could be hindered if comprehensive crypto legislation is not enacted before the 2026 midterm elections.