Commonplace Chartered (STAN) Sees New Progress Frontiers in Non-Stablecoin Tokenization

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Stablecoins dominate the tokenization of real-world property (RWA), however Commonplace Chartered (STAN) stated it sees indicators of a broader shift underway.

With simply $23 billion at the moment in non-stablecoin RWAs, round 10% the dimensions of the stablecoin market, the funding financial institution anticipates vital progress as regulatory readability improves and the main focus shifts to property that profit extra meaningfully from being on-chain, it stated in a analysis report Wednesday.

Tokenization is among the major makes use of of blockchain know-how and it’s attracting consideration and funding from the TradFi world. Stablecoins are cryptocurrencies whose worth is tied to a different asset, such because the U.S. greenback or gold. They play a serious function in cryptocurrency markets and are additionally used to switch cash internationally.

Jurisdictions like Singapore, Switzerland, the EU and Jersey have made progress on regulation, the financial institution famous, however inconsistent know your buyer (KYC) guidelines stay a barrier.

Nonetheless, the chance lies in focusing on property the place tokenization provides actual worth, the report stated.

“To unlock progress potential, we consider tokenization efforts have to deal with on-chain property which might be cheaper and/or extra liquid than their off-chain equivalents, with shorter settlement occasions, or that clear up an on-chain want,” wrote Geoff Kendrick, head of digital property analysis at Commonplace Chartered.

The financial institution famous that tokenized personal credit score has proven promise by providing quicker settlement and value efficiencies.

In distinction, efforts to tokenize already-liquid property similar to gold or U.S. equities have seen restricted traction as they fail to ship clear on-chain benefits, the financial institution stated.

The financial institution expects personal fairness and liquid off-chain commodities to be the subsequent progress areas for non-stablecoin tokenization.

Learn extra: Stablecoin Market Could Grow to $2T by End-2028: Standard Chartered





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