TL;DR
- Standard Chartered forecasts rapid growth in non-stablecoin tokenized real-world assets (RWA), especially in private markets.
- Current non-stablecoin RWA market stands at $23 billion, or 10% of the stablecoin market.
- Regulatory momentum is rising, but KYC inconsistencies remain a barrier.
- The bank calls for focus on illiquid and inefficient asset classes, such as private equity and commodities.
Tokenization’s Next Chapter Moves Beyond Stablecoins
In its June 2025 research report, Standard Chartered presented a strong case for the next wave of real-world asset tokenization, focusing on non-stablecoin opportunities. While stablecoins have long anchored blockchain’s financial infrastructure, the bank suggests it is time to evolve the narrative.
As of mid-2025, only $23 billion worth of non-stablecoin RWAs are circulating on-chain, compared to a stablecoin market size of over $230 billion, according to a CoinGecko 2025 market update.
Standard Chartered anticipates that this imbalance will diminish as regulatory frameworks mature and blockchain solutions prove their value in improving liquidity, cost, and transparency in traditionally opaque markets.
Tokenized Asset Market Comparison (2025)
| Asset Class | Estimated Value | Source |
| Stablecoins | $230+ billion | CoinGecko 2025 Stablecoin Report |
| Non-Stablecoin RWAs | $23 billion | Standard Chartered Report |
| Forecasted Stablecoin Mkt (2028) | $2 trillion | CoinDesk Article |
Regulatory Momentum Picking Up — But Gaps Remain
According to the bank, jurisdictions like Singapore, Switzerland, the EU, and Jersey are making meaningful strides in crypto regulation. The EU’s Markets in Crypto Assets (MiCA) regulation, for example, provides a harmonized framework for digital assets across 27 member states.
But fragmented Know Your Customer (KYC) standards across jurisdictions are still a major constraint on cross-border institutional adoption. As stated by Geoff Kendrick, Head of Digital Assets Research at Standard Chartered, interoperability and compliance will be essential if tokenization is to scale.
“Tokenization efforts need to focus on assets that are cheaper and/or more liquid than their off-chain equivalents,” Kendrick noted in the report.
From Hype to Utility: Where Blockchain Can Actually Help
The bank warns that much of the existing tokenization activity has centered around assets like gold and U.S. equities, which are already liquid and efficient in traditional markets. These efforts have seen limited success, as they provide few meaningful improvements when ported onto blockchain.
Instead, the report champions tokenizing assets where friction is highest:
- Private credit: Offers faster settlement and operational cost reduction through smart contract automation.
- Private equity: Makes long-term, illiquid investments more accessible and tradable.
- Commodities (beyond gold): Improves traceability, fractional ownership, and 24/7 global trading via tokenized contracts.
By focusing on assets that are difficult to settle or access, tokenization can unlock tangible efficiencies, such as reduced counterparty risk, faster trade finality, and broader participation.
Stablecoins Paved the Way, But They’re Not the Endgame
Stablecoins such as USDT, USDC, and DAI continue to play an important role as on-chain representations of fiat currencies, providing reliable liquidity rails for DeFi and centralized exchanges alike.
Yet, Standard Chartered emphasizes that future growth lies beyond currency tokens. Real value will be created when blockchain is used to digitize and streamline complex financial assets, from structured credit to real estate and alternative investments.
“Tokenization should not just replicate off-chain markets—it should improve them,” Kendrick argued.
Working Prototypes Are Already Emerging
There is early momentum in tokenizing illiquid assets. Protocols like:
…have shown how private credit and U.S. Treasuries can be issued, traded, and settled on-chain while staying compliant with traditional legal and regulatory frameworks.
Meanwhile, institutions such as Franklin Templeton are already experimenting with tokenized money market funds, further validating the bank’s thesis.
However, Standard Chartered notes that scaling these models requires more than technical capacity. It demands:
- Institutional custody solutions
- Globalized legal recognition of tokenized rights
- On-chain identity and risk management tools
What’s Next for Non-Stablecoin Tokenization?
Looking ahead, Standard Chartered forecasts rapid expansion in the tokenization of:
- Private equity stakes via tokenized LP shares
- Off-chain commodities like industrial metals or energy contracts
- Structured debt that can be disaggregated into retail-accessible formats
This growth will be fueled by:
- Advancements in Layer 2 solutions like Arbitrum and Starknet
- Better interoperability standards across chains (e.g., Chainlink CCIP)
- Regulatory tailwinds from G7, IMF, and BIS
The bank believes that by 2026–2028, non-stablecoin tokenized markets could rival stablecoins in scale and significance—especially if digital identity and compliance layers improve.
Conclusion: From Concept to Capital Markets Transformation
Standard Chartered’s latest insights suggest that the tokenization of real-world assets is entering a more mature, utility-driven phase. While stablecoins have laid the foundation, the future lies in digitizing illiquid, opaque, and operationally inefficient markets.
For financial institutions, this represents not only a strategic pivot—but a massive commercial opportunity to modernize the very architecture of capital markets.
