Standard Chartered Predicts Next Wave of Tokenization to Move Beyond Stablecoins

The future of real-world asset (RWA) tokenization is poised to expand far beyond stablecoins, setting its sights on private markets and illiquid assets, according to a new report from Standard Chartered (STAN).

While stablecoins remain the dominant force in RWA tokenization, the bank sees momentum building for a broader transformation. Non-stablecoin RWAs currently total just $23 billion — roughly 10% of the stablecoin market’s size — but Standard Chartered anticipates significant growth as regulatory frameworks mature and the industry pivots toward assets that stand to benefit most from being on-chain.

“Tokenization needs to zero in on assets that are cheaper or more liquid than their traditional forms, offer faster settlement, or solve specific on-chain needs,” said Geoff Kendrick, head of digital assets research at Standard Chartered, in Wednesday’s report.

Tokenization, a core application of blockchain technology, has captured growing interest from traditional finance (TradFi) players. Stablecoins — crypto assets pegged to fiat currencies like the U.S. dollar or commodities like gold — play a crucial role in crypto markets and international payments.

Though regions such as Singapore, Switzerland, the European Union, and Jersey have made regulatory strides, inconsistent know-your-customer (KYC) standards remain a hurdle, the bank noted.

Nevertheless, the opportunity lies in focusing on assets where blockchain can unlock true advantages. For example, tokenized private credit has shown potential by offering faster settlement times and reduced costs.

In contrast, attempts to tokenize already-liquid assets like gold or U.S. equities have struggled to gain traction, given the limited added value of moving these assets on-chain.

Looking ahead, Standard Chartered sees private equity and off-chain commodities as the next promising frontiers for non-stablecoin tokenization, as the industry evolves beyond its stablecoin roots.