RWAs Could Reach $2 Trillion by 2028, Matching Stablecoin Market Cap: Standard Chartered
Tokenized Real-World Assets Poised to Reach $2 Trillion by End-2028, Matching Stablecoin Market Cap
A report by Standard Chartered has made a compelling case for the explosive growth of tokenized real-world assets (RWAs) in the decentralized finance (DeFi) sector. Analyst Geoff Kendrick expects the market value of RWAs to reach $2 trillion by the end of 2028, comparable to the size of the global stablecoin market.
The report highlights that DeFi is entering a new phase of expansion, driven by the rapid growth in stablecoins. Kendrick notes that the "2025 stablecoin boom has started to unleash the type of technology-driven disruption seen in other industries." This suggests that wider stablecoin usage will enable non-bank players to take on traditional banking roles in payments and savings.
The Rise of Stablecoins and DeFi-Based Lending
Kendrick points out that stablecoin liquidity has created the conditions for rapid growth in DeFi-based lending and borrowing, which have historically been dominated by Ethereum. He states that "stablecoin liquidity and DeFi banking are important pre-requisites for a rapid expansion of tokenized real-world assets." This implies that the growing demand for stablecoins will drive innovation in the field of DeFi, enabling new products and services that were previously unavailable.
According to Kendrick, the $2 trillion RWA market by 2028 will be comprised of various types of assets. Tokenized money-market funds are expected to account for around $750 billion, while listed equities will also contribute significantly to this total. Less liquid assets such as private equity, commodities, and real estate will make up the remainder.
A Self-Sustaining Cycle of DeFi Growth
The report highlights the self-sustaining nature of DeFi growth, where liquidity begets new products, and new products in turn create more liquidity. Kendrick refers to this phenomenon as "a self-sustaining cycle of DeFi growth." This suggests that once a critical mass of liquidity is achieved, DeFi-based lending and borrowing will expand rapidly, fueled by the existence of stablecoins.
Regulatory Risks
However, Kendrick cautions that regulatory uncertainty in the U.S. remains the main risk to this forecast. Although he notes that this is "not our base case," implying that it is not the most likely scenario. The report highlights that regulatory clarity will be crucial for the continued growth of DeFi and tokenized RWAs.
Challenges and Opportunities
The growth of DeFi-based lending and borrowing brings significant opportunities, but also challenges the traditional banking sector. Kendrick notes that "non-bank players are increasingly taking on traditional banking roles in payments and savings," creating new competition in these areas. This shift to DeFi is expected to disrupt traditional financial systems and lead to the emergence of new business models.
Market Outlook
The report by Standard Chartered provides a compelling case for the potential of tokenized real-world assets to reach $2 trillion by 2028. The growth of stablecoins and DeFi-based lending will drive innovation in the field, enabling new products and services that were previously unavailable. However, regulatory clarity remains the main risk to this forecast.
In conclusion, the report highlights the rapid evolution of DeFi and its potential to disrupt traditional financial systems. As RWAs approach $2 trillion by 2028, investors and institutions must be prepared for significant changes in the market landscape.
