Standard Chartered analysts predict a massive wave of tokenized assets will flow into DeFi, potentially reaching $4 trillion by 2028. This shift, split between stablecoins and tokenized real-world assets (RWAs) like bonds and funds, is set to make DeFi protocols the core infrastructure for onchain finance.
Why DeFi Wins
The key advantage? Composability. On blockchain, assets, exchanges, lending systems, and settlement rails operate on the same shared ledger. This means a tokenized asset can earn yield, serve as collateral, and remain tradable simultaneously — something traditional finance struggles with due to separate intermediaries for custody, settlement, and collateral management.
Real-World Example
BlackRock's BUIDL fund, issued via Securitize, already demonstrates this integration. It generates Treasury yield, acts as collateral, and interacts with lending protocols without separate integrations.
Regulatory Catalyst
Clearer U.S. regulation, like the CLARITY Act advancing in the Senate, could accelerate institutional adoption. If passed, it would bring more assets onchain.
Resilience Despite Hacks
Recent exploits draining nearly $600 million haven't deterred the bank's optimism. Larger protocols are becoming more resilient through audits, insurance, and professional governance, positioning them to scale with institutional demand.
Token Prices to Benefit
As more assets move onchain, DeFi protocol tokens are expected to see higher valuations due to increased throughput and usage.
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