Tokenized real-world assets (RWAs) could reach a cumulative value of $2 trillion by 2028, according to a new report from Standard Chartered. The investment bank said that the growing use of decentralized finance (DeFi) for payments and investments is accelerating the migration of global capital onto blockchain-based systems.
DeFi’s “trustless” architecture could begin challenging the dominance of traditional finance (TradFi), which relies on centralized intermediaries.
Of the projected $2 trillion market cap, $750 billion is expected to come from tokenized money-market funds, another $750 billion from US stocks, and the remaining $500 billion from US funds, private equity, commodities, and real estate.
Stablecoin liquidity and DeFi banking are important pre-requisites for a rapid expansion of tokenised RWAs. Standard Chartered’s global head of digital assets research.
If realized, this would represent a 57-fold increase from today’s $35 billion RWA market, based on data from RWA.xyz.
Stablecoins driving DeFi’s self-reinforcing growth cycle
Standard Chartered highlighted that stablecoins are the backbone of DeFi’s recent momentum. The total stablecoin supply hit a record $300 billion on Oct. 3, reflecting a 46.8% growth rate since the start of the year.
Kendrick noted that this liquidity expansion is creating a “self-sustaining cycle” for DeFi innovation.
In DeFi, liquidity begets new products, and new products beget new liquidity. A self-sustaining cycle of DeFi growth has started.
As more liquidity circulates through onchain markets, DeFi platforms are increasingly able to support sophisticated financial products and institutional participation.
Regulatory clarity remains the key challenge
Despite its bullish outlook, Standard Chartered cautioned that regulatory uncertainty remains a major headwind for the RWA sector. The report warned that the market’s trajectory could slow if the Trump administration fails to pass comprehensive crypto legislation before the 2026 midterm elections.
Analysts at the bank emphasized that clear policy frameworks are essential to unlocking the next wave of institutional adoption and bridging the gap between TradFi and DeFi.