Standard Chartered’s Tokenization Adventure: The Next Big Thing or Just a Fad?

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What to know:

  • Stablecoins are like the popular kids in school, ruling the tokenization playground, while non-stablecoin assets are the shy kids in the corner, but hey, they’ve got potential! 💰
  • Standard Chartered is feeling optimistic about regulatory progress, but let’s be real, KYC rules are like that one friend who always flakes on plans. 🙄
  • Future growth? It’s all about those illiquid assets, like private equity and commodities, where tokenization can actually do something useful. Who knew? 🤷‍♀️

So, stablecoins are hogging the limelight in the tokenization of real-world assets (RWA), but guess what? Standard Chartered (STAN) thinks there’s a shift happening. Maybe it’s like a mid-life crisis for the market? 😅

Currently, there’s a mere $23 billion in non-stablecoin RWAs, which is about 10% of the stablecoin market. But don’t worry, the investment bank is betting on a growth spurt as regulations get clearer and the focus shifts to assets that actually want to be on-chain. Talk about a glow-up! ✨

Tokenization is the cool new kid on the blockchain block, attracting all the attention from the TradFi world. Stablecoins are basically cryptocurrencies that are besties with other assets, like the U.S. dollar or gold. They’re the life of the party in crypto markets and help with international money transfers. 🎉

Places like Singapore, Switzerland, the EU, and Jersey are making strides in regulation, but let’s not kid ourselves—those inconsistent KYC rules are still a major buzzkill. 😩

But fear not! The report says there’s still hope in targeting assets where tokenization can actually add value. It’s like finding a hidden gem in a thrift store! 💎

Geoff Kendrick, the head of digital assets research at Standard Chartered, believes that to really unlock growth, tokenization needs to focus on on-chain assets that are cheaper and/or more liquid than their off-chain counterparts. Shorter settlement times? Yes, please! 🙌

The bank has noticed that tokenized private credit is showing promise, offering faster settlements and cost efficiencies. Who knew finance could be so exciting? 😏

On the flip side, trying to tokenize already-liquid assets like gold or U.S. equities has been about as successful as a diet on a pizza night—no real benefits to show for it. 🍕

Looking ahead, the bank is eyeing private equity and liquid off-chain commodities as the next big growth areas for non-stablecoin tokenization. Buckle up, folks! 🚀

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2025-06-18 20:27