Standard Chartered Identifies Non-Stablecoin Tokenization as the Next Growth Frontier in RWAs

Non-Stablecoin Tokenization as the Next Growth Frontier

New research from Standard Chartered Bank, released Wednesday, highlights this sector's untapped potential, especially in private equity and illiquid assets.

The report estimates that the non-stablecoin RWA tokenization market has reached approximately $23 billion, about 10% of the stablecoin market. With advancements in regulatory frameworks and blockchain infrastructure, this segment is positioned for substantial growth.

Private equity and commodities are identified as key areas where tokenization could unlock value by improving liquidity and reducing transaction costs. This development could democratize access to traditionally exclusive markets, enabling broader participation by both retail and institutional investors.

“Private equity tokenisation, which has been slow to take off so far, may benefit from similar onchain positives to private credit,” Geoff Kendrick, global head of digital assets research at Standard Chartered Bank, said in the report.

“We would expect a successful platform to quickly catch up with (and keep pace with) the successful private credit platforms.”

Tokenized Reinsurance – A New Frontier in RWAs

Tokenized reinsurance has emerged as a groundbreaking application of blockchain technology, showcasing the rapid progress of RWAs.

Reinsurance, a $784 billion global market, has historically been inaccessible to most investors due to outdated infrastructure and high entry barriers. Now blockchain-based tokenization is reshaping this industry by enhancing access, transparency, and efficiency.

Through tokenized infrastructure, capital can now flow more effectively into reinsurance pools. For example, combining yield-bearing stablecoins like Ethena’s sUSDe with tokenized reinsurance risk creates structured products that generate returns across various market conditions. These products not only offer underwriting yields but also capture collateral yields during bull markets, making them attractive to investors.

Dan Roberts from OnRe emphasizes the importance of this innovation, stating that tokenized reinsurance delivers "broader access, greater transparency, and potentially more resilient returns." With the reinsurance market's capital expected to grow to $2 trillion over the next decade, tokenization marks a pivotal moment in the evolution of RWAs.

The Road Ahead for RWA Tokenization

The convergence of structured finance and Web3 infrastructure is reshaping traditional markets, offering new opportunities for scalability, transparency, and open participation.

As RWAs evolve, the focus is shifting from replicating traditional financial systems on-chain to creating crypto-native solutions that unlock new forms of value.

Tokenization is enabling faster and more transparent capital flows, particularly in sectors like reinsurance, where barriers to entry are being dismantled. As the market matures, the integration of decentralized and traditional systems will likely drive further innovation, solidifying RWAs as a cornerstone of the digital asset ecosystem.