Commonplace Chartered projected that tokenization of real-world property (RWAs) past stablecoins might speed up considerably over the subsequent 5 years, pushed by regulatory progress and a sharper give attention to high-impact use circumstances, in line 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 property like non-public credit score, securitized debt, non-public fairness, and commodities have trailed behind at round $2 billion.
In line with the report, the hole stems largely from uneven laws and early initiatives focusing on areas with restricted worth from blockchain adoption.
Focus shifting past stablecoins
Geoffrey Kendrick, head of digital property analysis at Commonplace Chartered, defined that the business’s heavy reliance on stablecoins has overshadowed different tokenization prospects that might remodel illiquid and hard-to-access markets.
Kendrick wrote:
“Non-stablecoin RWA tokenization has lagged for various causes — regulatory uncertainty and give attention to improper areas being amongst them. Nevertheless, as regulatory readability emerges and if tokenizers give attention to the appropriate areas, then progress will come.”
The report singled out tokenized non-public credit score as a notable early success, citing it as proof that blockchain can unlock actual worth by enhancing liquidity for property historically thought-about troublesome to commerce.
It argued that the identical logic can prolong to non-public fairness and area of interest commodities markets, the place institutional traders are actively in search of higher effectivity and transparency.
Regulatory patchwork persists
Regardless of the optimism, Commonplace Chartered cautioned that regulatory fragmentation stays an impediment. Jurisdictions comparable to 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 referred to as for tokenization methods that emphasize “areas of differentiation from off-chain property” slightly than replicating what already works nicely in conventional markets. By doing so, platforms and issuers might achieve traction even in unsure regulatory environments.
The report highlighted that tokenized non-public credit score, structured debt, and company bonds have begun to increase steadily, with projections displaying an accelerated climb ranging from 2025.
It additional advised that if business gamers leverage classes from non-public credit score and construct strong compliance frameworks, non-stablecoin RWAs might emerge as the subsequent main wave within the digital asset sector.