Key Takeaways
Standard Chartered expects tokenized assets to expand DeFi protocol use and activity.Forecasts place on-chain assets at $4 trillion by the end of 2028, split between stablecoins and RWAs.Institutions may favor established platforms, though regulatory and technical risks remain.
Tokenized Assets Put DeFi Protocols in Focus
Standard Chartered Bank forecast in a report published on May 18 that tokenized assets on blockchain networks will reach $4 trillion by the end of 2028, with decentralized finance ( DeFi) protocols expected to become core infrastructure. Geoff Kendrick, global head of digital assets research, said the market will split evenly between stablecoins and tokenized real-world assets ( RWAs).
The report identifies three channels for higher DeFi throughput. More assets can move on-chain, a larger share of those assets can be deposited into DeFi, and lending against on-chain assets can increase. Standard Chartered said those drivers are multiplicative for protocol activity and token prices. Standard Chartered wrote:
“We forecast that there will be USD 4tn of tokenised assets on-chain by end-2028, half in stablecoins and half in non- stablecoin RWAs.”
Composability is central to the bank’s view. Tokenized assets can settle instantly, trade continuously, support permissionless issuance, and serve several functions at once. A single position can earn yield, collateralize a loan, and remain liquid, improving capital efficiency compared with traditional financial systems.
Institutional Adoption May Support DeFi Expansion
Institutional links are already forming through DeFi back-end infrastructure. Standard Chartered cited Coinbase’s connection with Morpho through a bitcoin lending product. Coinbase provides front-end and custody services, while Morpho supplies lending logic, the liquidation engine, and the capital pool. The product has about $1.75 billion in loans across 22,000 borrowers.
Established protocols could benefit as traditional finance brings more assets on-chain. The bank said operators are likely to favor platforms with strong risk metrics and professional governance. It also highlighted regulatory uncertainty, smart contract risk, oracle dependencies, governance issues, and user-experience gaps as key risks. Standard Chartered added:
“The transition from TradFi to DeFi is underway. DeFi protocols are the infrastructure native to tokenised assets – they are the exchanges, clearinghouses, lending desks, and asset managers of the tokenised world, running as autonomous software.”
Other tokenization data shows a broader institutional buildout. Binance Research projected tokenized assets could reach $1.6 trillion by 2030, with Treasury products, gold-backed commodities, and tokenized public equities among the clearest adoption areas. Chainalysis said RWAs were approaching $30 billion in assets under management, while separate market data showed the tokenized RWA market reached at least $34.5 billion in May, with reports also citing a $37.5 billion market capitalization figure, after roughly 100% year-over-year growth.
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