Standard Chartered projects that decentralized finance could host roughly $2 trillion in tokenized assets by 2028, a projection that presses traditional financial firms to take notice.
Become a Doc: Profile Ethereum wallets and discover their behavior.
Use WalletAutopsy.
What the projection says
The forecast places a monetary scale on tokenization well beyond niche experiments, signaling larger flows of capital into digital securities and real-world asset tokens. The estimate centers on tokenized bonds, equities and fund shares that could move from trial stages to regular use. Financial institutions now weigh how this scale would change operational practices and market access.
How tokenization grows
Tokenization converts conventional assets into digital tokens that can record ownership on public or permissioned ledgers. Issuers and custodians have tested token models for bonds, commercial paper and asset-backed instruments. Market participants expect tokenized instruments to offer finer-grained ownership, automated settlement and new liquidity patterns, provided regulatory and technical hurdles are met.
Institutional custody and crypto wallets
Custody remains central to institutional adoption. Banks and custodians must reconcile traditional safekeeping with keys and smart-contract custody models. Some institutions plan to use institutional-grade crypto wallets combined with multi-party computation and secure hardware, while others explore delegated custody through regulated intermediaries. The choices affect operational risk and regulatory treatment.
Compliance and regulatory attention
Regulators will scrutinize token issuance, transfer mechanics and whether token holders receive equivalent investor protections. Compliance teams will need to map how existing rules apply to tokenized forms of shares, debt or funds. Firms that propose token models say they aim to embed controls in code, but regulators will evaluate those mechanisms against disclosure, custody and anti-money-laundering standards.
Market structure and settlement
Settlement timing is a material consideration. Tokenized assets often promise near-instant settlement via on-chain processes, which contrasts with legacy batch settlement cycles. Faster transfer of ownership can reduce counterparty credit exposure, but it also requires reliable fail-safes and reconciliations between ledger records and off-chain legal frameworks. Clearing and settlement entities face questions about how ledger records integrate into existing netting and finality arrangements.
Operational risks and third-party services
Third-party infrastructure such as custodians, oracles and bridges will carry operational risk if volumes rise. Reliance on smart contracts and external data sources introduces new failure modes. Institutions that engage with tokenized markets will need robust testing, incident response plans and contractual protections covering code vulnerabilities, downtime and third-party insolvency.
On-chain infrastructure and crypto analytics
On-chain systems will take on heavier roles in price discovery, settlement verification and transparency. That will increase demand for specialized services that provide real-time transaction insight and address verification. Firms offering crypto analytics could see greater demand from compliance and treasury teams that require transaction tracing, attribution and activity monitoring tied to tokenized holdings.
Liquidity and market access
Liquidity depends on issuance size, market makers and secondary trading venues. Tokenized assets open possibilities for fractional ownership and extended trading hours, which can broaden participation. Market makers and trading protocols will influence bid-ask spreads and depth, and institutional participants will watch whether liquidity proves reliable in stress periods.
Interoperability and fragmentation
Interoperability across ledgers matters. Tokenized instruments that exist on different chains or under different token standards require bridges and common settlement conventions. Fragmentation could raise custody complexity and reconciliation burdens if holders need to manage assets across multiple chains and custody services.
Risk governance and contractual clarity
Governance frameworks must clarify rights attached to tokens, dispute resolution paths and fallback procedures if smart contracts behave unexpectedly. Legal teams face work translating token holdings into enforceable claims under local law. Clear documentation and industry conventions will reduce friction and increase institutional confidence.
What market participants should watch
Participants should watch issuance milestones, trading venue rules and regulatory guidance. Evidence that large institutions commit real capital to tokenized instruments will change counterparty assessments and the product mix. Observers will also track how custody arrangements and legal opinions address token holder rights and settlement finality.
Concluding view
Projection puts a number on a possible future rather than a guaranteed outcome. If tokenization approaches the projected scale, internal controls, custody models and compliance programs will require rapid adaptation. Market actors that combine legal clarity, operational resilience and transparent reporting will find it easier to integrate tokenized assets into established portfolios and systems.
Standard Chartered served as the origin of this forecast. The estimate invites careful evaluation of technical readiness and regulatory alignment before broad institutional adoption occurs. Observers who monitor issuance pipelines, custodian offerings and on-chain indicators will gain the clearest view of progress toward the projection.