Standard Chartered Forecasts $2 Trillion Real-World Asset Tokenization Market by 2028 ∞ Adoption

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Briefing

Global banking giant Standard Chartered has publicly asserted a strategic conviction that the tokenization of Real-World Assets (RWA) will become the next foundational layer for capital markets, driving a significant shift in traditional finance’s operating model. This projection immediately validates the RWA vertical as a core institutional growth vector, moving the conversation from pilot programs to full-scale market re-platforming, which is directly supported by the deep on-chain liquidity provided by the rapidly expanding stablecoin market. The bank quantifies this conviction with a definitive forecast ∞ the RWA tokenization market is projected to surge to $2 trillion by the end of 2028 , a 57x increase from its current size of approximately $35 billion.

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Context

Traditional asset management and private markets are fundamentally characterized by operational friction, high intermediary costs, and severe illiquidity. Processes like fund subscription, secondary trading, and custody often rely on manual, multi-day, and opaque settlement cycles, creating significant capital lock-up and counterparty risk for institutional investors. This legacy infrastructure limits accessibility to exclusive asset classes, such as private equity and real estate, to a narrow base of accredited investors. The prevailing operational challenge is the absence of a unified, 24/7, and instantly verifiable system for ownership transfer and asset servicing, which tokenization directly addresses by creating a digital, programmable representation of the asset on a shared ledger.

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Analysis

Standard Chartered’s forecast is a direct strategic signal impacting the future of asset issuance and treasury management systems. The bank’s analysis centers on Ethereum’s proven reliability and established network trust, positioning it as the dominant settlement layer for this market re-platforming. This adoption thesis alters the operational mechanics of the capital markets by substituting siloed, intermediary-dependent record-keeping with a secure, transparent, and programmable shared ledger.

The chain of cause and effect for the enterprise and its partners is clear ∞ stablecoin liquidity provides the necessary on-chain cash layer, which enables the tokenized RWA to be traded and settled instantly (T+0), drastically reducing counterparty risk and freeing up capital. This convergence creates a new framework for asset distribution, allowing financial institutions to unlock new revenue streams from fractional ownership and improved capital efficiency.

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Parameters

Forecasting Institution ∞ Standard Chartered
Market Target Valuation ∞ $2 Trillion
Target Timeline ∞ End of 2028
Primary Underlying Protocol ∞ Ethereum (Expected to host majority of activity)
Current Market Size (Baseline) ∞ ~$35 Billion
Key Market Driver ∞ Stablecoin Market Growth ($300 Billion in early October 2025)
Primary Tokenization Use Cases ∞ Money Market Funds, U.S. Equities, Private Equity, Real Estate

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Outlook

The next phase of this strategic adoption will involve a competitive race among global financial institutions to build the compliant, scalable infrastructure required to capture market share within the forecasted $2 trillion valuation. This public endorsement by a major bank establishes a new industry standard, forcing competitors to accelerate their digital asset roadmaps to avoid being marginalized in the emerging 24/7 global asset trading ecosystem. The focus will shift from simple asset tokenization to creating fully integrated, tokenized financial products that leverage smart contracts for automated compliance, collateral management, and dividend distribution, ultimately leading to a more capital-efficient global financial system.

The Standard Chartered $2 trillion forecast is a definitive strategic mandate, confirming that the convergence of global banking and blockchain technology is now focused on the systemic re-platforming of all major real-world asset classes.

Signal Acquired from ∞ coinpedia.org