Tokenization to Surge to $2 Trillion by 2028, Standard Chartered Predicts Amid DeFi Growth

Tokenization is set to expand by 5,600% to reach a $2 trillion market by 2028, according to a forecast by Standard Chartered. The British bank attributes this explosive growth to the continued expansion of decentralized finance (DeFi) lending via stablecoins, which it views as the infrastructure enabling real-world assets—such as stocks, bonds, commodities, and funds—to migrate onchain.

"All assets and infrastructure exist on the same ledger and can therefore interact without barriers."

Geoffrey Kendrick, Global Head of Digital Assets Research at Standard Chartered

Kendrick’s optimistic outlook comes despite recent turbulence in the DeFi space that has shaken investor confidence in onchain transactions.

DeFi Rebound After Major Exploit and Bank Run

In early April, a nearly $300 million exploit of the Ethereum liquid restaking protocol KelpDAO triggered a bank run on the decentralized lending platform Aave. The incident resulted in Aave losing $17 billion in deposits and $5.5 billion in active loans as panic spread. Kendrick described it as "one of the most severe DeFi shocks in recent memory."

However, rather than fracturing, the DeFi community responded with coordination. A coalition of DeFi protocols and companies raised over $300 million to stabilize the system and restore backing ratios.

While the hack exposed vulnerabilities and temporarily dented confidence, Kendrick argues it does not derail the core growth engine of tokenization. He highlights that rapid industry stabilization efforts and structural upgrades reinforce the long-term case for DeFi banking and stablecoin liquidity—two critical pillars supporting the projected $2 trillion real-world asset market by 2028.

Onchain Banking Boom: The Future of DeFi Lending

Kendrick anticipates a DeFi banking bonanza, emphasizing that lending in DeFi reduces the cost of capital due to its built-in composability and seamless operation compared to traditional finance.

In simple terms, a single asset in DeFi can perform multiple functions simultaneously. It can earn returns, serve as collateral for a loan, and remain available for trading—all without additional risk, according to the report. In traditional finance, achieving this multi-use profile requires capital to be spread across separate intermediaries such as brokers, banks, and custodians, increasing costs and friction.

Several components of DeFi make this process far more efficient, Kendrick notes:

• Lending platforms allow users to earn returns and take out loans.
• Liquid staking keeps assets usable even while staked.
• Decentralized exchanges provide the liquidity needed for trading.

"Lending protocols are the central focus of this activity," Kendrick said. "Without them, there would be no connection across multi-use activities."