Stableecoins dominate the tokenization of assets in the real world (RWA), but Standard Chartered (Stan) said it sees signs of a wider shift in progress.
With only $ 23 billion currently in Non-StableCoin Rwas, approx. 10% The size of the stablecoin market, the investment bank expects significant growth as regulatory clarity improves, and the focus is changing to assets that benefit from more meaningful by being on-chain, it said in a research report on Wednesday.
Tokenization is one of the most important uses of blockchain technology, and it attracts the attention and investment of the Tradfi world. Stableecoins are cryptocurrencies whose value is bound 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 made progress in regulation, noticed the bank, but inconsistent with your customer (KYC) rules remaining a barrier.
Still, the possibility of targeting assets is where tokenization adds real value, the report says.
“To unlock the growth potential, we believe that tokenization efforts need to focus on assets on the chain that is cheaper and/or more fluid than their off-chain equivalents, with shorter settlement times, or which solves a need for chain,” wrote Geoff Kendrick, head of digital active research.
The bank noted that tokenized private credit has shown promise by offering faster settlement and cost -effectiveness.
In contrast, the efforts to tokenize already fluid assets such as gold or US stocks have seen limited traction as they do not provide clear benefits on the chain, the bank said.
The bank expects private equity and liquid off-chain raw materials to be the next growth areas for non-stablecoin tokenization.
Read more: StableCOin market could grow to $ 2T at Slut-20128: Standard Charter
