The financial world is quietly preparing for its next massive transformation — and Ethereum appears to be at the center of it. According to a new report from Standard Chartered Bank, traditional assets are preparing to move onto blockchain networks at a pace and scale that could redefine global finance.
The bank estimates that the market for tokenized real-world assets (RWAs), excluding stablecoins, could reach $2 trillion by 2028, up from roughly $35 billion today. This shift, the report says, would rival the growth of exchange-traded funds (ETFs) and digital payments during their earliest years.
Stablecoins Paved the Way for Tokenization
Standard Chartered credits stablecoins for quietly laying the foundation for this upcoming transformation. Over the past several years, fiat-backed tokens like USDC and Tether (USDT) have created the infrastructure, trust, and familiarity that make tokenization possible.
“Stablecoins proved the model works,” said Geoffrey Kendrick, Head of Digital Assets Research at the bank. “They established the bridge between traditional money and the blockchain economy. Now, we’re ready to see other asset classes make that same move.”
Kendrick noted that stablecoins acted as the proof of concept for bringing liquidity and real-world value into digital ecosystems. This foundation, he said, now allows money-market funds, equities, and corporate instruments to begin shifting on-chain with confidence.
Ethereum’s “Battle-Tested” Advantage
While dozens of blockchain networks have emerged promising higher speed or lower transaction costs, Standard Chartered believes Ethereum will dominate the upcoming wave of institutional tokenization.
Kendrick called Ethereum “battle-tested and boring — exactly what capital markets need.” The bank argues that Ethereum’s long history of reliability, transparency, and compatibility gives it a critical edge over newer platforms.
“Speed is nice,” Kendrick explained, “but trust is essential. Ethereum’s decade-long track record and developer ecosystem make it the most credible base layer for global settlement.”
The Structure of a $2 Trillion Tokenized Market
Standard Chartered’s analysis divides the future tokenization market into four main segments. Around $750 billion could come from tokenized money-market funds, another $750 billion from publicly listed equities, and about $500 billion from private credit, real estate, commodities, and investment funds combined.
This shift would effectively transform blockchains like Ethereum into digital capital markets, where trading, custody, and clearing all happen seamlessly in real time. Such an ecosystem would eliminate many of the frictions that currently slow down financial transactions in traditional systems.
DeFi’s Second Phase of Growth
Kendrick’s report also describes this tokenization trend as DeFi’s (Decentralized Finance) true evolution. For years, DeFi was seen as an experimental space centered on crypto-native activities such as staking, lending, and speculative trading.
However, with the arrival of tokenized corporate bonds and equities, DeFi could transition into a mature financial infrastructure. “When you can trade tokenized assets like bonds on decentralized platforms, DeFi stops being an experiment and becomes infrastructure,” Kendrick said.
He compared the coming growth cycle to the early days of financial derivatives, when increasing liquidity created a “flywheel effect” — more liquidity attracted new products, and new products attracted more liquidity.
Regulation Unlocks Institutional Adoption
A key driver behind Standard Chartered’s optimistic outlook is the regulatory clarity emerging in the United States. The GENIUS Act, passed in 2025, provided clear guidelines for stablecoin issuers, encouraging more institutional participation in digital assets.
The upcoming Digital Asset Market Clarity Act, expected in early 2026, could extend similar clarity to tokenized securities and other on-chain assets. Kendrick said that if regulators like the SEC and CFTC align their policies with the spirit of these laws, tokenization could move from a niche innovation to a mainstream pillar of finance.
The only remaining risk, he warned, would be political gridlock that might delay implementation until after the 2026 U.S. midterm elections.
From Concept to Core Infrastructure
For Standard Chartered, tokenization represents more than another blockchain trend — it signals the next stage of financial modernization. Kendrick likened it to the rise of stablecoins, which revolutionized payments by reducing friction and increasing access.
“What stablecoins did for payments, tokenization will do for investment markets,” he said. “It will remove settlement delays, expand accessibility, and dissolve the borders that separate global capital markets.”
He summarized the transformation with a simple phrase: “Stablecoins opened the door. Tokenization will rebuild the house.”
Ethereum’s Role in the Future of Finance
With institutional investors, banks, and regulators now aligned around blockchain adoption, Ethereum is emerging as the primary settlement layer for the digital economy. Its combination of security, interoperability, and developer support makes it the platform most likely to host the coming wave of tokenized assets.
As the world moves toward a tokenized financial system, Ethereum’s dominance could become even more entrenched — not because it’s the fastest, but because it’s the most trusted.
If Standard Chartered’s forecast proves correct, the tokenization era may not only redefine how assets are traded but also cement Ethereum’s position as the backbone of the next-generation financial system.
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