In a recent report, Standard Chartered highlighted that the tokenization of real-world assets (RWA) has a massive potential for growth, particularly beyond stablecoins.
Challenges in Asset Tokenization
According to the report, while stablecoins comprise the bulk of blockchain-based RWAs, the tokenization of other assets such as private credit, securitized debt, private equity, and commodities has lagged at just $2 billion. This is attributed to fragmented regulations and limited efforts in sectors where blockchain offers limited tangible value.
Unlocking Illiquid Markets
Geoffrey Kendrick, head of digital assets research at Standard Chartered, emphasized that over-reliance on stablecoins has stifled innovation in other promising areas. He pointed to the potential of blockchain to bring liquidity and transparency to historically opaque and difficult-to-access markets. CITE_W_A 'Non-stablecoin RWA tokenization has lagged for a number of reasons — regulatory uncertainty and focus on wrong areas being amongst them,' Kendrick stated.
Building Institutional Momentum
Standard Chartered also sees strong potential for tokenization in private equity and niche commodities markets, where institutional investors are actively seeking greater transparency and operational efficiency. The bank believes that with the right regulatory framework and strategic focus, the sector could unlock significant capital flows in the coming years.
The Standard Chartered report emphasizes the importance of establishing a clear regulatory environment and strategic approach for successful tokenization of real assets, which could lead to significant economic growth and improved liquidity.
