Standard Chartered forecasts surge tokenizing real-world assets beyond stablecoins

Standard Chartered projected that tokenization of real-world assets (RWAs) beyond stablecoins could accelerate importantly implicit the adjacent 5 years, driven by regulatory advancement and a sharper absorption connected high-impact usage cases, according to a June 20 study shared with CryptoSlate.

The bank’s report, titled “RWA Tokenisation — A Growth Opportunity,” highlighted that portion stablecoins stay the ascendant operator of blockchain-based RWAs, efforts to tokenize non-stablecoin assets similar backstage credit, securitized debt, backstage equity, and commodities person trailed down astatine astir $2 billion.

According to the report, the spread stems largely from uneven regulations and aboriginal projects targeting areas with constricted worth from blockchain adoption.

Focus shifting beyond stablecoins

Geoffrey Kendrick, caput of integer assets probe astatine Standard Chartered, explained that the industry’s dense reliance connected stablecoins has overshadowed different tokenization prospects that could alteration illiquid and hard-to-access markets.

Kendrick wrote:

“Non-stablecoin RWA tokenization has lagged for a fig of reasons — regulatory uncertainty and absorption connected incorrect areas being amongst them. However, arsenic regulatory clarity emerges and if tokenizers absorption connected the close areas, past maturation volition come.”

The study singled retired tokenized backstage recognition arsenic a notable aboriginal success, citing it arsenic impervious that blockchain tin unlock existent worth by improving liquidity for assets traditionally considered hard to trade.

It argued that the aforesaid logic tin widen to backstage equity and niche commodities markets, wherever organization investors are actively seeking amended ratio and transparency.

Regulatory patchwork persists

Despite the optimism, Standard Chartered cautioned that regulatory fragmentation remains an obstacle. Jurisdictions specified arsenic Singapore, Switzerland, the EU, and Jersey person developed clearer rules for RWAs, but others lag, portion know-your-customer (KYC) checks proceed to complicate cross-border adoption.

The bank’s probe called for tokenization strategies that stress “areas of differentiation from off-chain assets” alternatively than replicating what already works good successful accepted markets. By doing so, platforms and issuers could summation traction adjacent successful uncertain regulatory environments.

The study highlighted that tokenized backstage credit, structured debt, and firm bonds person begun to grow steadily, with projections showing an accelerated ascent starting from 2025.

It further suggested that if manufacture players leverage lessons from backstage recognition and physique robust compliance frameworks, non-stablecoin RWAs could look arsenic the adjacent large question successful the integer plus sector.

The station Standard Chartered forecasts surge tokenizing real-world assets beyond stablecoins appeared archetypal connected CryptoSlate.