Customary Chartered projected that tokenization of real-world belongings (RWAs) past stablecoins may speed up considerably over the following 5 years, pushed by regulatory progress and a sharper concentrate on high-impact use circumstances, in accordance with a June 20 report shared with CryptoSlate.
The financial institution’s report, titled “RWA Tokenisation — A Progress Alternative,” highlighted that whereas stablecoins stay the dominant driver of blockchain-based RWAs, efforts to tokenize non-stablecoin belongings like personal credit score, securitized debt, personal fairness, and commodities have trailed behind at round $2 billion.
In accordance with the report, the hole stems largely from uneven rules and early initiatives concentrating on areas with restricted worth from blockchain adoption.
Focus shifting past stablecoins
Geoffrey Kendrick, head of digital belongings analysis at Customary Chartered, defined that the trade’s heavy reliance on stablecoins has overshadowed different tokenization prospects that might rework illiquid and hard-to-access markets.
Kendrick wrote:
“Non-stablecoin RWA tokenization has lagged for a variety of causes — regulatory uncertainty and concentrate on incorrect areas being amongst them. Nonetheless, as regulatory readability emerges and if tokenizers concentrate on the appropriate areas, then development will come.”
The report singled out tokenized personal credit score as a notable early success, citing it as proof that blockchain can unlock actual worth by enhancing liquidity for belongings historically thought of tough to commerce.
It argued that the identical logic can lengthen to non-public fairness and area of interest commodities markets, the place institutional buyers are actively in search of higher effectivity and transparency.
Regulatory patchwork persists
Regardless of the optimism, Customary Chartered cautioned that regulatory fragmentation stays an impediment. Jurisdictions resembling Singapore, Switzerland, the EU, and Jersey have developed clearer guidelines for RWAs, however others lag, whereas know-your-customer (KYC) checks proceed to complicate cross-border adoption.
The financial institution’s analysis known as for tokenization methods that emphasize “areas of differentiation from off-chain belongings” fairly than replicating what already works properly in conventional markets. By doing so, platforms and issuers may acquire traction even in unsure regulatory environments.
The report highlighted that tokenized personal credit score, structured debt, and company bonds have begun to develop steadily, with projections displaying an accelerated climb ranging from 2025.
It additional steered that if trade gamers leverage classes from personal credit score and construct strong compliance frameworks, non-stablecoin RWAs may emerge as the following main wave within the digital asset sector.
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