Standard Chartered projected that tokenization of real-world assets (RWAs) beyond stablecoins could accelerate significantly over the next five years, driven by regulatory progress and a sharper focus on high-impact use cases, according to a June 20 report shared with CryptoSlate.
The bank’s report, titled “RWA Tokenisation — A Growth Opportunity,” highlighted that while stablecoins remain the dominant driver of blockchain-based RWAs, efforts to tokenize non-stablecoin assets like private credit, securitized debt, private equity, and commodities have trailed behind at around $2 billion.
According to the report, the gap stems largely from uneven regulations and early projects targeting areas with limited value from blockchain adoption.
Focus shifting beyond stablecoins
Geoffrey Kendrick, head of digital assets research at Standard Chartered, explained that the industry’s heavy reliance on stablecoins has overshadowed other tokenization prospects that could transform illiquid and hard-to-access markets.
Kendrick wrote:
“Non-stablecoin RWA tokenization has lagged for a number of reasons — regulatory uncertainty and focus on wrong areas being amongst them. However, as regulatory clarity emerges and if tokenizers focus on the right areas, then growth will come.”
The report singled out tokenized private credit as a notable early success, citing it as proof that blockchain can unlock real value by improving liquidity for assets traditionally considered difficult to trade.
It argued that the same logic can extend to private equity and niche commodities markets, where institutional investors are actively seeking better efficiency and transparency.
Regulatory patchwork persists
Despite the optimism, Standard Chartered cautioned that regulatory fragmentation remains an obstacle. Jurisdictions such as Singapore, Switzerland, the EU, and Jersey have developed clearer rules for RWAs, but others lag, while know-your-customer (KYC) checks continue to complicate cross-border adoption.
The bank’s research called for tokenization strategies that emphasize “areas of differentiation from off-chain assets” rather than replicating what already works well in traditional markets. By doing so, platforms and issuers could gain traction even in uncertain regulatory environments.
The report highlighted that tokenized private credit, structured debt, and corporate bonds have begun to expand steadily, with projections showing an accelerated climb starting from 2025.
It further suggested that if industry players leverage lessons from private credit and build robust compliance frameworks, non-stablecoin RWAs could emerge as the next major wave in the digital asset sector.
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