Defi set to challenge Tradfi with $2T in Tokenized Assets by 2028: Standard Chartered
Investment Bank Standard Chartered (STAN) says decentralized finance (DEFI) is emerging as a powerful alternative to traditional finance, which relies on centralized systems managed by trusted authorities such as central banks.
The bank announced that by the end of 2028, non-StableCoin tokenized assets will reach a market capitalization of $ 2 trillion, from $ 35 billion today, which corresponds to the expected market size of StableCoin.
Tokenized money market funds and listed equities can each account for about $750 billion, with funds, private equity, commodities, corporate debt and real estate making up the remainder, the bank said in Thursday’s report.
Defi.
According to Kendrick, the 2025 boom in StableCoins has accelerated Defi’s transition from a suitable niche-native activity to a major financial force, enabling non-banks to handle payments and savings that were once dominated by traditional institutions.
The widespread use of StableCoins has increased awareness in developed markets and injected on-chain liquidity that is driving further innovation, especially in lending and borrowing, the report said.
StableCoins are cryptocurrencies whose value is tied to another asset, such as the US dollar or gold. They play a major role in the cryptocurrency markets, providing the payment infrastructure, and are also used to transfer money around the world.
Kendrick argued that this liquidity and growth in Defi Banking lays the groundwork for an explosion in tokenized real-world assets (RWA).
Standard Chartered sees this as the start of a cycle of its own: liquidity creates new products, which in turn attract more liquidity. The main risk, the report noted, is if the United States fails to deliver regulatory clarity before the 2026 midterm elections, even if that is not the base case.
Read more: Wall Street Bank Cities See StableCoins Powering Crypto’s Next Growth Phase
