While stablecoins continue to dominate real-world asset (RWA) tokenization, Standard Chartered says the market is on the verge of a broader transformation.
In a research report shared by Coindesk, the bank highlighted that only $23 billion is currently tokenized in non-stablecoin RWAs—roughly 10% the size of the stablecoin sector—but expects this figure to grow substantially as focus shifts to more impactful blockchain applications.
“To unlock growth potential, we believe tokenization efforts need to focus on on-chain assets that are cheaper and/or more liquid than their off-chain equivalents, with shorter settlement times, or that solve an on-chain need,” said Geoff Kendrick, head of digital assets research at the bank.
Tokenization Beyond Stablecoins
Tokenization—transforming physical or traditional financial assets into blockchain-based digital tokens—has attracted growing interest from traditional finance (TradFi), but so far, stablecoins have captured most of the market share. Pegged to fiat currencies like the U.S. dollar or commodities like gold, stablecoins are widely used for trading, remittances, and cross-border payments.
Yet, Standard Chartered argues that the next phase of tokenization lies in assets where being on-chain offers meaningful advantages, such as faster settlement, improved liquidity, or cost reductions. This could include tokenized government bonds, private credit, commodities, or fund shares.
Regulatory Progress but KYC Challenges Remain
The report acknowledges that regulatory advancements in jurisdictions such as Singapore, Switzerland, the EU, and Jersey have laid the groundwork for broader adoption. However, fragmented KYC rules still present obstacles to seamless tokenized finance.
Despite this, Standard Chartered remains optimistic that the value-driven evolution of tokenization will continue to accelerate, especially as global regulatory frameworks become more consistent.
The bank’s outlook underscores growing momentum within the financial industry to move beyond stablecoins and unlock new efficiencies through blockchain-based representations of real-world value.
Kosta Gushterov
Reporter at Coindoo
Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a “detective-like” mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets.
Source: https://coindoo.com/standard-chartered-real-world-asset-tokenization-poised-for-growth-beyond-stablecoins/