Standard Chartered (STAN) Identifies Fresh Opportunities in Tokenization Beyond Stablecoins

Stablecoins dominate the tokenization of real-world assets (RWA), but Standard Chartered (STAN) notes signs of a broader shift underway. With just $23 billion currently in non-stablecoin RWAs, about 10% of the stablecoin market’s size, the investment bank anticipates significant growth as regulatory clarity improves and the focus shifts to assets that derive greater benefits from being on-chain, as stated in a recent research report.
Tokenization is a critical application of blockchain technology, attracting attention and investment from the traditional finance sector. Stablecoins are cryptocurrencies whose value is pegged to another asset, such as the U.S. dollar or gold. They play a key role in cryptocurrency markets and are also utilized for international money transfers.
Jurisdictions like Singapore, Switzerland, the EU, and Jersey have made strides in regulations, but inconsistent know your customer (KYC) rules continue to pose challenges. Nonetheless, the opportunity exists in targeting assets where tokenization adds genuine value, according to the report.
“To unlock growth potential, we believe tokenization efforts need to focus on on-chain assets that are cheaper and/or more liquid than their off-chain equivalents, with shorter settlement times, or that solve an on-chain need,” wrote Geoff Kendrick, head of digital assets research at Standard Chartered. The bank highlighted that tokenized private credit has shown promise by offering faster settlements and cost efficiencies.
In contrast, attempts to tokenize already-liquid assets such as gold or U.S. equities have experienced limited success, as they do not provide clear on-chain advantages, according to the bank. It expects private equity and liquid off-chain commodities to emerge as the next growth areas for non-stablecoin tokenization.