Standard Chartered Identifies Growth Opportunities in Non-Stablecoin Tokenization

Standard Chartered (STAN) reports a shift in the tokenization of real-world assets (RWA), with current non-stablecoin RWAs at $23 billion, only 10% of the stablecoin market. The bank predicts growth as regulatory clarity increases.

Key points include:

Tokenization is a primary use of blockchain technology gaining traction in traditional finance.
Stablecoins are tied to assets like the U.S. dollar or gold and facilitate international money transfers.
Regulatory progress has been made in regions such as Singapore, Switzerland, the EU, and Jersey, but inconsistent KYC rules pose challenges.
Opportunities lie in on-chain assets that provide cost efficiencies, liquidity, and shorter settlement times.
Tokenized private credit shows promise for faster settlements and cost savings.
Limited success in tokenizing already-liquid assets like gold and U.S. equities due to lack of clear advantages.
Private equity and liquid off-chain commodities are expected to be the next growth areas for non-stablecoin tokenization.