Standard Chartered Sees 900% Growth Potential in Non-Stablecoin Tokenization

Standard Chartered has identified a notable transition in the real-world asset (RWA) tokenization market, with stablecoins currently leading the way but the sector poised for broader expansion. The bank's research report reveals that only $23 billion of non-stablecoin RWAs are tokenized, which is approximately 10% of the stablecoin sector's size. This figure is anticipated to increase significantly as the emphasis shifts towards more impactful blockchain applications.

Geoff Kendrick, head of digital assets research at Standard Chartered, stressed the importance of focusing tokenization efforts on on-chain assets that provide benefits such as lower costs, enhanced liquidity, shorter settlement times, or solutions to on-chain needs. This shift could include a variety of assets, such as tokenized government bonds, private credit, commodities, and fund shares.

The report recognizes that regulatory progress in various jurisdictions has established a foundation for broader adoption of tokenization. However, fragmented Know Your Customer (KYC) rules continue to present challenges to seamless integration within the tokenized finance ecosystem. Despite these hurdles, Standard Chartered maintains a positive outlook on the future of tokenization, predicting that the value-driven evolution will continue to accelerate as global regulatory frameworks become more consistent.

The bank's perspective reflects a growing momentum within the financial industry to move beyond stablecoins and unlock new efficiencies through blockchain-based representations of real-world value. This transformation is expected to result in faster settlement times, improved liquidity, and cost reductions, making tokenization a more appealing option for a wider range of assets. As the market evolves, the focus on non-stablecoin RWAs is likely to drive significant growth and innovation in the tokenization sector.