$4 Trillion Tokenized Assets by 2028: DeFi Boom Incoming?

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$4 Trillion Tokenized Assets by 2028 Could Ignite DeFi Boom, Standard Chartered Says

As a researcher tracking the growth of digital assets, my team at Standard Chartered projects that tokenized assets on blockchains will reach $4 trillion by the end of 2028. We anticipate that stablecoins and tokenized real-world assets will each make up half of this total, and we see decentralized finance (DeFi) providing the underlying infrastructure to support this significant amount of capital.

According to Geoff Kendrick, the bank’s head of digital asset research, the ability for different protocols to work together—known as composability—gives them a significant and lasting edge over traditional financial systems.

Standard Chartered Pushes Composability as the Multiplier

Kendrick explains that composability allows a single investment on the blockchain to both generate earnings and be used as security for other transactions, all while still being available for trading.

Outside of blockchain technology, achieving the same level of access typically involves multiple third parties and legal contracts. For instance, BlackRock’s BUIDL fund, which manages around $2.7 billion, demonstrates this approach.

This digital Treasury asset generates around 4% in returns and is used to support stablecoins. It can also be used as security for loans on platforms like Aave.

By 2028, the value of tokenized assets is predicted to hit $4 trillion, with stablecoins and real-world assets each making up half of that total. This significant growth will demand much faster processing speeds from DeFi platforms. Kendrick believes that DeFi protocols already known for their security and reliable governance will likely see the biggest gains, and their asset prices should increase as a result.

Traditional finance often forces users to divide their funds between different companies and disconnected systems.

Standard Chartered estimates the configuration lowers the effective cost of capital meaningfully.

Three Channels for Throughput

The bank identifies three drivers for protocol revenue, with each lever compounding the others:

  • More assets move on-chain
  • A higher share of those gets deposited into DeFi
  • A higher share again is then borrowed against.

USD Coin (USDC) from Circle is a good illustration of this trend. As more USDC is created, more of it is also being used in decentralized finance (DeFi) platforms.

As a crypto investor, I’m keeping a close eye on projects that prioritize safety and are run by experienced teams. It seems like those are the ones most likely to attract significant investment in the long run – the ones that aren’t taking crazy risks and are actually well-managed.

Catalyst Watch

Analyst Kendrick believes the CLARITY Act will be a key factor driving more institutions to enter the lending market. Current predictions on the Polymarket platform suggest a 64% chance the bill will pass in 2026.

Standard Chartered estimates around 1,000 times more value sits off-chain than on-chain today.

Well-established platforms with strong security measures should offer the most potential for gains. Newer or less-tested platforms could experience bigger losses when used by large investors.

The key question now is whether major financial institutions will start depositing significant amounts of tokenized money into open lending platforms.

Increased trading activity would support Kendrick’s ideas and change how people see DeFi. Instead of just a place for risky bets, it would become a fundamental part of the financial system for institutions.

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2026-05-19 13:47