Standard Chartered has projected a significant acceleration in the tokenization of real-world assets (RWAs) beyond stablecoins over the next five years. This projection is driven by regulatory progress and a sharper focus on high-impact use cases, as highlighted in a report shared with CryptoSlate on June 20.
The report, titled “RWA Tokenisation — A Growth Opportunity,” emphasizes that while stablecoins have been the primary driver of blockchain-based RWAs, efforts to tokenize non-stablecoin assets such as private credit, securitized debt, private equity, and commodities have been slower at around $2 billion.
One of the main reasons for this gap is attributed to uneven regulations and early projects targeting areas with limited value from blockchain adoption. Geoffrey Kendrick, head of digital assets research at Standard Chartered, pointed out that the industry’s heavy reliance on stablecoins has overshadowed other tokenization prospects that could potentially transform illiquid and hard-to-access markets.
Kendrick believes that as regulatory clarity emerges and tokenizers focus on the right areas, growth in non-stablecoin RWA tokenization will follow suit. The report highlights tokenized private credit as an early success story, showcasing how blockchain technology can enhance liquidity for assets that are typically challenging to trade.
Despite the optimistic outlook, Standard Chartered also acknowledges that regulatory fragmentation remains a significant obstacle. While some jurisdictions like Singapore, Switzerland, the EU, and Jersey have developed clearer rules for RWAs, others are lagging behind. Additionally, cross-border adoption is complicated by stringent know-your-customer (KYC) checks.
The report recommends that tokenization strategies should focus on areas of differentiation from off-chain assets rather than replicating traditional market practices. By doing so, platforms and issuers can gain traction even in uncertain regulatory environments.
Furthermore, the report predicts a steady expansion of tokenized private credit, structured debt, and corporate bonds, with projections indicating a more rapid growth trajectory starting in 2025. If industry players learn from the success of private credit and establish robust compliance frameworks, non-stablecoin RWAs could emerge as the next major wave in the digital asset sector.
In conclusion, the tokenization of real-world assets beyond stablecoins presents a promising growth opportunity, provided that regulatory challenges are addressed and a strategic focus is placed on high-impact use cases. The evolution of this sector could potentially revolutionize traditional markets and unlock new opportunities for investors and issuers alike.