Standard Chartered Says Tokenization Could Bring Trillions Into DeFi

Standard Chartered, a global banking giant, believes decentralized finance could become a key part of the future financial system as trillions of dollars in assets move onto blockchains in the coming years.

In a new research report, the bank predicted that tokenized assets on public blockchains could reach $4 trillion by the end of 2028. Analysts expect this market to include stablecoins and tokenized real-world assets like bonds, treasury products, and investment funds.

The report, led by Geoffrey Kendrick, Standard Chartered’s head of digital assets research, argued that DeFi protocols are well suited to support tokenized financial markets.

The report says blockchain-based systems let assets, lending platforms, exchanges, and settlement layers work together on the same network. This feature, called composability, could make things much more efficient than traditional financial systems that use many intermediaries.

The bank pointed to BlackRock’s tokenized treasury fund BUIDL as an early example of how tokenized assets can already work with decentralized finance applications. Kendrick also said that clearer U.S. regulations, like the proposed CLARITY Act, could speed up institutional adoption of tokenized assets and DeFi infrastructure.

The report added that more blockchain activity would likely help the native tokens of DeFi protocols as more assets move on chain. More transactions, lending, and collateral use could make decentralized platforms stronger overall.

Even though security concerns remain after several high-profile DeFi hacks, Standard Chartered said that top protocols are becoming more resilient through audits, insurance, and better governance.

The report shows that traditional banks are starting to see blockchain technology as a possible foundation for future financial markets, not just a niche experiment.

Standard Chartered projects $4T in tokenized assets by end-2028, with DeFi protocols primary beneficiaries https://t.co/1ena1cgnRa

— The Block (@TheBlockCo) May 18, 2026

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