Standard Chartered, a major global bank, has released a projection that the market for tokenized real-world assets (RWAs) on blockchain could reach $2 trillion by the year 2028. The bank expects this segment to grow rapidly over the next few years, driven largely by increasing institutional adoption, better infrastructure, and a strong demand for more efficient capital markets.
What is driving the growth of tokenized assets?
The bank anticipates significant expansion in areas such as tokenized funds, bonds, private credit, and other alternative assets. This is especially true in sectors where traditional financial markets currently struggle with issues like slow settlement times and limited liquidity. In essence, tokenization is seen as a way to digitize assets like real estate, art, or bonds, making them easier to trade and settle on a blockchain.
Several major figures in finance and crypto have weighed in on the trend. BlackRock CEO Larry Fink described tokenization as a foundational shift for financial markets. He said, “The next generation for markets, the next generation for securities, will be tokenization of securities.” This kind of endorsement from a traditional finance heavyweight is notable.
How are exchanges and banks preparing?
A recent analysis from Binance argues that tokenization represents a transition point for the crypto industry. The exchange points out that tokenized assets improve capital efficiency, as they can be used as collateral in various scenarios including trading, lending, and decentralized finance platforms. Crypto leaders like Changpeng Zhao and Brian Armstrong have also been vocal. Zhao has said tokenization could unlock “trillions of dollars” in value that is currently illiquid, while Armstrong stated, “Everything that can be tokenized, will be.”
Ethereum co-founder Vitalik Buterin offered a more measured perspective. He suggested that blockchain systems achieve their greatest value when they represent real-world economic activity rather than being purely speculative instruments. This aligns with the vision of bridging traditional finance and crypto.
Infrastructure is already being built. Standard Chartered has worked with BlackRock and OKX to create frameworks that allow tokenized funds to be used as collateral. Banks and exchanges are collaborating on shared systems, which might help speed up adoption.
Implications for retail investors
Tokenization could potentially lower barriers to entry for retail investors. This is possible by enabling fractional ownership of assets such as private credit funds, government securities, and real estate-linked instruments. So, instead of needing millions to invest in a private bond, an investor might buy a small tokenized share. However, access will depend heavily on regulatory frameworks and platform development, which remain uneven across jurisdictions. Not all countries are moving at the same speed.
Most analysts do not expect tokenization to replace traditional finance anytime soon. Instead, it is likely to evolve alongside it. Banks are expected to retain central roles due to their regulatory relationships and institutional trust. Blockchain networks, however, may gradually take on more settlement and issuance functions over time. Experts predict that adoption will unfold gradually across different regions and markets, rather than happening all at once.
