Non-Stablecoin Tokenization Emerges as a New Growth Avenue for Standard Chartered

Standard Chartered: Tokenization’s Next Frontier Lies Beyond Stablecoins

Real-world asset (RWA) tokenization is on the cusp of expanding far beyond stablecoins, with private markets and illiquid assets emerging as key targets, according to a new report from Standard Chartered (STAN).

While stablecoins have so far dominated the tokenization landscape, the bank sees momentum building to bring a wider range of assets on-chain. At present, non-stablecoin RWAs amount to about $23 billion in value — just one-tenth the size of the stablecoin market — but Standard Chartered believes that figure will grow significantly as regulations evolve and market players identify where tokenization delivers real advantages.

“Tokenization must focus on assets that are cheaper or more liquid on-chain, enable faster settlement, or fulfill specific on-chain functions,” said Geoff Kendrick, head of digital assets research at Standard Chartered, in Wednesday’s report.

Tokenization, which leverages blockchain to represent ownership of real-world assets, has increasingly caught the interest of traditional financial institutions. Stablecoins — crypto tokens backed by fiat currencies like the U.S. dollar or by commodities such as gold — are central to crypto markets and digital payments.

Despite regulatory progress in regions like Singapore, Switzerland, the EU, and Jersey, the bank noted that inconsistent know-your-customer (KYC) standards remain a barrier for the industry.

The real opportunity, according to Standard Chartered, lies in focusing on assets where blockchain brings clear benefits. For example, tokenized private credit has demonstrated the ability to lower transaction costs and accelerate settlements.

In contrast, efforts to tokenize already-liquid assets like gold or U.S. equities have seen limited success, as such assets don’t gain significant added value from moving on-chain.

Looking ahead, the bank sees private equity and off-chain commodities as promising areas for future tokenization, marking a shift away from the stablecoin-centric focus that has defined the market so far.