Stablecoins dominate the token of real world assets (RWA), but Standard Chartered (Stan) said it sees signs of a broader change in progress.
With only $ 23 billion currently in RWAS not establishments, about 10% of the size of the Stablecoin market, the investment bank anticipates significant growth as it improves regulatory clarity and the approach changes to assets that benefit more significantly in being in the chain, he said in a research report on Wednesday.
Tokenization is one of the main uses of blockchain technology and is attracting attention and investment of the world of traffic. The stable are cryptocurrencies whose value is linked to another asset, 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 progressed in the regulation, the bank said, but inconsistent know the rules of their client (KYC) are still a barrier.
Even so, the opportunity lies in attacking assets where tokenization adds a real value, according to the report.
“To unlock the growth potential, we believe that the tokenization efforts should focus on chain assets that are cheaper and/or more liquid than their equivalents outside the chain, with shorter settlement times, or that they solve a need in the chain,” wrote Geoff Kendrick, head of digital asset research at Standard Chartered.
The Bank said that the tokenized private credit has proven promising to offer faster settlement and cost efficiency.
In contrast, efforts to tokenize already liquid assets, such as gold or US actions, have seen a limited traction by not offering clear advantages in the chain, the bank said.
The bank expects private capital and liquid products outside the chain to be the upcoming growth areas for tokenization not established.
Read more: The Stablecoin market could grow to $ 2T in the late 2028: Standard Chartered
