Non-stablecoin tokenized assets could grow fast as regulations improve, says Standard Chartered.
- Standard Chartered sees future value in tokenizing new asset types.
- Private credit and off-chain commodities may lead the next growth phase.
- Lack of global KYC rules still slows down development.
What Is Tokenization?
Tokenization is the process of putting real-world assets, like loans or commodities, on a blockchain. Right now, stablecoins take up most of this market. These are cryptocurrencies tied to the value of a stable asset, like the U.S. dollar. They make up about 90% of all tokenized assets.
Shift Toward Non-Stablecoin Assets
Standard Chartered says the market for non-stablecoin tokenized assets is only $23 billion today. But that could change soon. As countries improve their rules, new types of assets may move on-chain. This includes areas where blockchain has a real use, like faster settlements and lower costs.
Promising Areas for Growth
The report highlights private credit as a good example. By using blockchain, companies can settle loans faster and at a lower cost. Tokenized loans are also easier to access and manage. This gives them an edge over traditional finance tools.
Why Some Assets Don’t Work Well On-Chain
Not every asset benefits from being tokenized. The bank says that assets like gold and U.S. stocks are already easy to trade. Putting them on a blockchain adds little value. So, these have seen limited success in the tokenization world.
What Could Come Next
In the near future, Standard Chartered sees potential in private equity and certain off-chain commodities. These are harder to trade in traditional markets, so tokenization could make them more accessible. Countries like Singapore, Switzerland, and parts of the EU are leading in making clear laws. But one global issue remains: unclear rules about user verification, called KYC.
Source: coindesk.com
