Standard Chartered: DeFi and Tokenization Will Reach Trillions of Dollars

The UK-based investment bank Standard Chartered stated that decentralized finance (DeFi) has strong growth potential as it offers a robust alternative to the traditional finance system. According to the bank's recent report, DeFi is no longer just crypto-focused but is becoming a core part of the global financial ecosystem.

By 2022, the market value of tokenized assets excluding stablecoins is expected to reach $2 trillion. This growth, which would multiply today's $35 billion figure nearly 60 times, presents a remarkable opportunity for investors. The report foresees that both money market funds and publicly traded stocks could reach approximately $750 billion in tokenization volume. Additionally, it is anticipated that the remaining tokenization volume will consist of asset classes such as funds, private equity, commodities, corporate debt, and real estate.

Geoff Kendrick, the Head of Digital Asset Research at the bank, stated that the stablecoin boom experienced in 2025 helped DeFi transition from being a “niche crypto area” to becoming a mainstream financial force. Kendrick noted that traditional banks are increasingly shifting payment and savings functions to decentralized platforms.

The report mentions that the use of stablecoins has raised awareness in developed markets, increased on-chain liquidity, and sparked innovations in DeFi protocols like lending and borrowing. Standard Chartered describes this process as a “self-reinforcing cycle.” The increase in DeFi liquidity allows for the development of new products, which in turn attracts more investors and liquidity.

The report also mentions that regulatory uncertainties could pose risks ahead of the 2026 US midterm elections; however, it emphasizes that this is not a likely scenario. The bank is optimistic that DeFi and tokenization will establish a permanent place in the global financial system.