CoinDesk
Standard Chartered analysts estimate that tokenized assets on public blockchains could reach $4 trillion by the end of 2028, with the figure evenly split between stablecoins and tokenized real-world assets such as bonds and funds. Geoffrey Kendrick, the bank's global head of digital assets research, argued in a Monday report that decentralized finance protocols are positioned to become the core infrastructure for those markets, handling trading, lending and collateral management as capital moves onchain.
The report centered on composability — the ability of blockchain-based assets, exchanges, lending systems and settlement rails to operate on a shared ledger, letting a single tokenized asset earn yield, back a loan and remain tradable simultaneously. Traditional finance still routes those functions through separate intermediaries, which Kendrick said creates friction the onchain model eliminates.
Why it matters
BlackRock's BUIDL tokenized Treasury fund, issued through Securitize, was cited as an early proof point: the fund can generate Treasury yield, serve as collateral and interact with lending protocols without bilateral integrations. Kendrick added that clearer U.S. regulation — specifically the CLARITY Act, which advanced out of the Senate Banking Committee last week — could accelerate institutional capital moving onchain if it becomes law later this year.
Market impact
The report argued that growing onchain asset volumes will eventually translate into higher DeFi protocol token valuations through increased protocol throughput. Kendrick also noted that well-established DeFi protocols are becoming more resilient via audits, insurance mechanisms and more professionalized governance, even as recent exploits at Drift and KelpDAO drained nearly $600 million combined. "Well-established DeFi protocols appear to be in a strong position to build the institutional links required to scale up," he wrote.
Frequently asked questions
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What is Standard Chartered's $4 trillion tokenization forecast?
Standard Chartered analysts estimate tokenized assets on public blockchains could reach $4 trillion by the end of 2028, evenly split between stablecoins and tokenized real-world assets such as bonds and funds.
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Why does StanChart think DeFi protocols will lead tokenized markets?
Geoffrey Kendrick, the bank's global head of digital assets research, argued that DeFi protocols are the infrastructure native to tokenized assets because composability lets a single token serve as yield, collateral and a tradable instrument on one shared ledger.
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What role does the CLARITY Act play in StanChart's thesis?
The report pointed to the CLARITY Act, which advanced out of the Senate Banking Committee last week, as a potential catalyst for bringing more institutional assets onchain if it becomes law later this year.
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How did the report frame recent DeFi exploits?
Kendrick acknowledged that hacks at Drift and KelpDAO drained nearly $600 million combined, but argued larger protocols are becoming more resilient through audits, insurance mechanisms and more professionalized governance.
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Could DeFi protocol tokens benefit from tokenization growth?
The report argued that more assets moving onchain means more throughput on DeFi protocols, which should eventually support higher valuations for protocol tokens.
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