Standard Chartered: Tokenization market to grow to $2T by 2028

The tokenization market is projected to grow by approximately 5,600% to reach $2 trillion by 2028, according to a forecast from Standard Chartered (SC). In a recent report cited by DL News, Geoffrey Kendrick, Head of Digital Assets Research at SC, explained that in a tokenized market, all assets and infrastructure exist on the same ledger, allowing for frictionless interaction. He identified lending protocols as the central hub for this activity. The expansion of stablecoin-based DeFi lending is a key driver, as the on-chain movement of real-world assets allows a single asset to simultaneously serve as collateral, generate yield, and provide liquidity, thereby lowering capital costs compared to traditional finance. The report also addressed the KelpDAO exploit and large outflows from Aave earlier this month, describing them as some of the most serious recent incidents in DeFi. However, it concluded that the fundamental growth drivers for tokenization remain intact.