Banking Giant Standard Chartered Eyes Growth in Non-Stablecoin Token Markets

Standard Chartered Predicts Tokenization Boom Beyond Stablecoins

Standard Chartered (STAN) says tokenization of real-world assets (RWAs) is ready to expand far beyond stablecoins, with private markets and illiquid assets poised to become the next focus areas.

In a report published Wednesday, the bank noted that while stablecoins have so far dominated the sector, momentum is building to bring a broader range of assets onto blockchains. Currently, non-stablecoin RWAs are valued at around $23 billion—a fraction of the stablecoin market’s size—but Standard Chartered believes that figure will grow as regulations mature and investors zero in on areas where tokenization adds genuine value.

“Tokenization makes the most sense for assets that become cheaper, more liquid, or faster to settle when moved on-chain—or that fulfill unique on-chain roles,” said Geoff Kendrick, head of digital assets research at Standard Chartered.

Tokenization involves creating blockchain-based representations of traditional assets, a concept that has captured growing interest among established financial institutions. Stablecoins, which are pegged to fiat currencies like the U.S. dollar or commodities such as gold, remain crucial to crypto markets and digital payments.

Despite regulatory progress in jurisdictions like Singapore, Switzerland, the European Union, and Jersey, inconsistent know-your-customer (KYC) rules still present hurdles, the bank said.

According to Standard Chartered, the biggest opportunities lie in tokenizing assets where blockchain provides clear benefits. For example, tokenized private credit has demonstrated potential for lower costs and faster settlement times.

Conversely, attempts to tokenize highly liquid assets like gold or U.S. equities have seen muted results because these markets already operate efficiently off-chain.

Looking ahead, the bank views private equity and off-chain commodities as promising candidates for tokenization, signaling a potential pivot away from the stablecoin-dominated landscape that has defined the market so far.