Stablecoins dominate the tokenization of Real-World Assets (RWA), but Standard Chartered (Stan) said that the signing of a wider shift on the road.
With only $ 23 billion currently in Non-Stablecoin RWAS, about 10% The size of the Stablecoin market, the investment bank anticipates considerable growth as the clarity of the regulations improves and the focus shifts to assets that benefit more when on the chain, it said in a research report on Wednesday.
Tokenization is one of the most important applications of blockchain technology and it attracts attention and investments from the Tradfi world. Stablecoins are cryptocurrencies whose value is bound to another person, such as the US dollar or gold. They play an important role in cryptocurrency markets and are also used to transfer money internationally.
Jurisdictions such as Singapore, Switzerland, the EU and Jersey have made progress in the field of regulations, noted the bank, but inconsistent knows that your customer (KYC) rules remain a barrier.
Nevertheless, the chance lies in aiming assets where tokenization adds real value, according to the report.
“In order to unlock the growth potential, we believe that tokenization efforts should concentrate on assets that are cheaper and/or more fluid than their equivalents outside the chain, with shorter settlement times, or who resolve a need for the chains at Standard Actionard, wrote head of Digelale Kendrick.
The bank noted that Tokenized private credit has shown promising by offering faster settlement and cost efficiency.
On the other hand, the efforts of already liquid assets such as gold or US shares have seen limited traction because they do not offer clear benefits on chains, the bank said.
The bank expects private equity and liquid off-chain raw materials to be the following growth areas for non-stabile tokenization.
Read more: Stablecoin market could grow to $ 2T in the end of 2028: Standard Chartered