As of 2025-10-31, the market for tokenized assets is spotlighted by a new institutional projection that frames rapid expansion and regulatory drivers.
Summary
What is the projected tokenized asset market size?
The analysis projects a market of $2 trillion by 2028, up from roughly $35 billion today — a rise of about 5,600% (as reported by The Block, quoting Standard Chartered). The forecast allocates roughly $750B to tokenized money market funds and $750B to tokenized listed equities, with other funds, private equity, commodities and real estate at $500B.
Those buckets imply a market composition dominated by highly liquid, cash-like instruments and publicly listed exposures, supported by faster settlement and continuous trading windows. If realised, the scale would require expanded custody services, institutional-grade market makers, and clear legal wrappers to allow cross-border settlement of tokenized instruments.
Investors should treat the projection as scenario analysis rather than a deterministic forecast; assumptions about technology adoption, counterparty risk and regulatory timing drive outcomes.
Note: allocation details and timing should be verified against the full report and the original article for context and assumptions.
How will tokenized asset change DeFi lending markets?
According to the analysis, stablecoins have paved the way for broader tokenization by increasing awareness, liquidity and on-chain lending activity. “Stablecoins have laid the groundwork for other asset classes — from tokenized money market funds to tokenized equities — to scale onchain,” said Geoffrey Kendrick, head of digital assets research at Standard Chartered.
This dynamic positions tokenized money market funds (forecast at $750B) as a potential backbone of short-term on‑chain funding, supporting lending desks and liquidity providers across both centralized and decentralized venues.
How does DeFi lending affect liquidity and yields?
DeFi lending protocols can widen access to credit and reduce intermediation, which may compress lending spreads relative to traditional markets. The report notes that lending and tokenized RWAs are the two areas where DeFi can meaningfully disrupt TradFi, and that if these assets become tradable on decentralized exchanges this “may provide an opportunity for disruption to stock exchanges.”
That said, the institutionalisation of DeFi lending will require standardized custody, insurance wrappers, rigorous smart‑contract audits and capital‑efficient onboarding processes to manage operational, counterparty and code risk.
Does tokenized asset ethereum dominance matter?
Platform concentration matters for settlement finality, composability and liquidity routing. The analysis expects Ethereum to remain the dominant platform, citing its decade‑long uptime record and reliability; the report suggests that relative speed or cost on rival chains is less important than network resilience.
Concentration on Ethereum implies that network upgrades, fee dynamics and layer‑2 adoption will influence issuance costs and the depth of secondary‑market liquidity for tokenized securities. Market participants should monitor settlement risk, cross‑chain bridges and interoperability standards that affect token portability and custodial practices.
What is the tokenized asset regulation update and timing? In brief:
In brief, the legislative calendar shows tangible movement: the GENIUS Act passed in July 2025 and the Digital Asset Market Clarity Act is expected in early 2026 (Source: Standard Chartered/The Block). These milestones aim to clarify the legal status of stablecoins and digital trading venues, which in turn could accelerate institutional adoption of tokenized instruments.
Regulatory clarity is time‑sensitive. The report highlights a material risk if US regulatory clarity fails to materialise before the 2026 midterm elections, a scenario that could slow capital flows into tokenized markets and delay product launches by custodians and asset managers.
Geoffrey Kendrick underlines the need for clear frameworks to support institutional uptake, noting that policy certainty is a prerequisite for many large custodians and pension‑fund allocators.
Tip: confirm legal interpretations and tax consequences for tokenized instruments in each jurisdiction before committing material capital.
The projection frames tokenization as a structural opportunity anchored by money market funds, listed equities and other asset classes, but dependent on market infrastructure and regulatory timelines. For incumbent financial institutions, the path to scale will be operational: custody, settlement, market‑making and compliance must be resolved in parallel.
In closing, the headline numbers — a projected $2 trillion market by 2028 from a base of ~$35 billion today — require careful scrutiny of model assumptions and policy risk. Platform choices, the pace of DeFi lending adoption and the shape of U.S. regulation will determine whether the estimate proves aspirational or achievable.