Tokenization explosion! Standard Chartered predicts a scale of 2 trillion dollars by 2028, with Ethereum dominating.

Jeffrey Kendrick, head of digital asset research at Standard Chartered Bank, predicts that the market capitalization of tokenized real-world assets (RWA) will skyrocket from the current approximately $35 billion to $2 trillion by the end of 2028, an increase of about 5,600%. Kendrick expects that the vast majority of on-chain activities will occur on Ethereum, citing that the Ethereum mainnet has been operating stably for over 10 years without any network interruptions.

The tokenization revolution path from 35 billion to 2 trillion

(Source: RWAXYZ)

Tokenization refers to the process of converting traditional assets into digital tokens on the blockchain, making them easier to trade and settle globally. According to predictions by Standard Chartered Bank, the market capitalization of tokenized real-world assets (RWA), excluding stablecoins, is expected to grow significantly from the current approximately $35 billion to $2 trillion by 2028, an increase of about 5,600%. This 56-fold growth forecast is not a mere figment of imagination, but is based on multiple catalysts.

Kendrick estimates that by 2028, tokenized money market funds and listed stocks will occupy the largest share of the $2 trillion market, followed by tokenized funds and other less liquid instruments. Specifically, tokenized money market funds will reach $750 billion, driven by corporate use of stablecoins. Tokenized listed stocks will reach $750 billion once US regulations are clarified and DeFi solutions are released. Tokenized funds will account for $250 billion, covering private equity, real estate, and other alternative investments.

Tokenization Market 2028 Forecast Breakdown:

Money Market Fund: $750 billion (37.5%), driven by corporate stablecoin applications.

Listed Stocks: $750 billion (37.5%), DeFi releases potential after regulatory clarity.

Funds and Alternative Investments: $250 billion (12.5%), private equity and real estate

Other liquidity tools: $250 billion (12.5%), bonds, commodities, etc.

The core driver of this growth path is the paving role of stablecoins. Kendrick stated, “Stablecoins lay the groundwork for the large-scale on-chain of other asset classes (from tokenized money market funds to tokenized stocks) by increasing awareness, liquidity, and on-chain lending.” Stablecoins currently have a market capitalization of about $200 billion, and this massive liquidity pool creates the necessary infrastructure for the tokenization of other assets.

Why Ethereum Will Dominate the Tokenization Market

Kendrick expects that the vast majority of such activities will take place on Ethereum due to its reliability. He stated that the Ethereum Mainnet has been operating stably for over 10 years without any network interruptions. “To us, the fact that other chains may be faster or cheaper is irrelevant,” he said. This perspective is particularly important in the field of tokenization, as security and reliability are far more critical than transaction speed when it comes to real-world assets.

The advantages of Ethereum lie not only in its technological reliability but also in its strong network effects. Currently, the vast majority of DeFi protocols, stablecoins, and institutional-grade blockchain solutions are deployed on Ethereum. Major tokenization products such as BlackRock's BUIDL fund and Franklin Templeton's BENJI fund have chosen Ethereum as their main platform. This first-mover advantage and institutional recognition create a self-reinforcing cycle.

For institutional investors, the decision-making logic when choosing a blockchain platform differs from that of retail investors. They will not transfer assets worth hundreds of millions of dollars simply because a particular chain has lower transaction fees by a few cents. Instead, they focus more on regulatory compliance, technological maturity, ecosystem depth, and long-term sustainability. Ethereum's leading position in these dimensions makes it a natural choice for the tokenization of real-world assets.

The maturity of Ethereum Layer-2 solutions has also provided better infrastructure for tokenization. Layer-2s like Arbitrum, Optimism, and Base significantly reduce transaction costs and increase throughput while maintaining the security of Ethereum. This combination of “Mainnet security + Layer-2 efficiency” provides an ideal environment for large-scale tokenization applications.

Stablecoin paving the way for DeFi disrupting TradFi in progress

Kendrick stated that decentralized finance (DeFi) primarily allowed cryptocurrency users to trade and lend to each other in the initial years. However, the increase in stablecoin liquidity has expanded the scope of on-chain lending activities to include various asset types. “Stablecoins have created several necessary prerequisites for the broader expansion of DeFi through the three pillars of raising public awareness, on-chain liquidity, and conducting on-chain lending activities in products pegged to fiat currencies.”

Kendrick believes that lending and RWA are the two key areas where DeFi protocols can disrupt traditional finance (TradFi). “If tokenized RWA can be traded on DEX (decentralized exchanges), this could present disruptive opportunities for securities exchanges.” This argument highlights the true revolutionary potential of tokenization: when traditional assets such as stocks, bonds, and real estate can be traded on decentralized exchanges 24/7, the role of traditional securities exchanges will be fundamentally transformed.

Kendrick added that in the DeFi space, liquidity spawns new products, which in turn brings new liquidity. “We believe that the self-sustaining cycle of DeFi growth has already begun.” This positive cycle has already been validated in the stablecoin space. As liquidity for stablecoins increases, more DeFi protocols offer services based on stablecoins, which in turn attracts more users and funds, further expanding the liquidity pool.

Clear regulations will accelerate the implementation of tokenization applications

The U.S. “GENIUS Act” was passed in July 2025, establishing a clear regulatory framework for stablecoins and accelerating their adoption in retail and institutional markets. According to Kendrick, the next significant legislative milestone is expected to be the “Digital Asset Market Transparency Act” (referred to as the “Transparency Act”), which is anticipated to be passed by the end of 2025 or early 2026. These regulatory advancements will further promote the tokenization of assets, the legalization of DeFi lending, and decentralized trading.

Kendrick stated that even without the Clarity Act, if U.S. regulators—especially the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC)—take action in line with the intent of that act after the current consultation period ends in mid-2026, it is still possible for clearer rules to emerge. This regulatory clarity is crucial for the institutional mass adoption of tokenization.

Kendrick warned that the main risk lies in the failure to achieve clarity in U.S. regulatory policies – this could happen if the government is unable to push reforms before the midterm elections in November 2026 – “but this is not our base case.” This risk serves as a reminder to investors that despite the bright prospects for the explosive growth of tokenization, it still depends on the continued improvement of the policy environment.

Kendrick's RWA predictions align in scale and timing with his stablecoin market capitalization forecasts. Stablecoins, as pioneers of tokenization, have proven the feasibility of blockchain technology in the digitization of real-world assets. With the gradual improvement of regulatory frameworks, the continuous maturation of technological infrastructure, and the increasing awareness among institutions, the leap in tokenization from $35 billion to $2 trillion may be realized faster than the market expects.