Standard Chartered Predicts $2 Trillion Tokenized RWA Market by 2028; Crypto Rallies Following US-China Trade Developments

Executive Summary

Standard Chartered has released a projection indicating that tokenized Real-World Assets (RWAs) are poised to achieve a cumulative valuation of $2 trillion by 2028. This comes as global cryptocurrency markets, led by Bitcoin and Ethereum, exhibited a notable rebound following diplomatic engagements between the United States and China that addressed trade tariffs. Concurrently, a pro-crypto advocacy group has publicly supported Andrew Cuomo's mayoral campaign, signaling efforts to influence digital finance policy.

The Event in Detail

Standard Chartered's RWA Forecast: Investment bank Standard Chartered forecasts that tokenized Real-World Assets (RWAs) will reach a $2 trillion market capitalization by 2028. This projection represents an over 57-fold growth from the current $35 billion cumulative value, as reported by RWA.xyz. The bank's report allocates the projected $2 trillion across various segments: $750 billion into money-market funds, $750 billion into tokenized US stocks, $250 billion into tokenized US funds, and $250 billion into less liquid private equity segments, including commodities, corporate debt, and real estate. Geoff Kendrick, global head of digital assets research at Standard Chartered, emphasized that stablecoin liquidity and decentralized finance (DeFi) banking are critical prerequisites for this expansion. The report identifies regulatory uncertainty as the primary risk to the RWA sector.

US-China Trade Agreements and Crypto Market Recovery: Following a meeting between US President Donald Trump and China's President Xi Jinping, an agreement was reached to lower tariffs on Chinese goods, avoid bottlenecks on rare-earth metals, and resume US soybean purchases. This development catalyzed a rebound across financial markets, including cryptocurrencies. Bitcoin (BTC) saw a marginal increase, trading above $110,000, while Ethereum (ETH) began to eye a breakthrough above $4,000. Ripple (XRP) also demonstrated recovery, building momentum above $2.50. The overall cryptocurrency market capitalization increased to $3.9 trillion, marking a 2% rise in a single day.

Pro-Crypto Group Backs Andrew Cuomo: Innovate NY, a pro-crypto advocacy group, has committed $30,000 to support Andrew Cuomo's campaign for New York City mayor. The group's initiative involves distributing flyers that highlight Cuomo's favorable stance on blockchain technology and stablecoins. Innovate NY aims to foster policies that promote a more welcoming regulatory environment for digital finance in New York City.

Market Implications

The anticipated growth in tokenized RWAs signifies a significant shift in capital allocation towards blockchain-based financial systems, challenging traditional finance (TradFi) structures. The move to tokenization is expected to enhance market liquidity and accessibility for global investors by converting physical assets into digital tokens. The regulatory clarity provided by frameworks like the proposed GENIUS Act, which mandates 1:1 backing for "payment stablecoins" and outlines regulatory oversight for issuers, could further accelerate institutional adoption and investment, as evidenced by the $200 million Series B funding for Stable Pay. The positive resolution of US-China trade tensions has demonstrated the immediate impact of macroeconomic events on cryptocurrency sentiment, driving a broad market recovery and potentially signaling increased investor confidence in digital assets as global economic stability improves. Political endorsements, such as the support for Andrew Cuomo, underscore a growing recognition of digital finance within political discourse, potentially leading to more favorable legislative environments for crypto innovation and adoption at municipal levels.

Expert Commentary

Standard Chartered's analysis posits that the "trustless" architecture of decentralized finance is positioned to disrupt traditional financial systems. Geoff Kendrick stated that "Stablecoin liquidity and DeFi banking are important pre-requisites for a rapid expansion of tokenised RWAs," indicating a foundational role for these components in the projected growth. The report also highlights that despite the optimistic forecasts, regulatory uncertainty remains the most substantial challenge to the RWA sector's expansion. Market experts also point to the GENIUS Act as a blueprint for federal RWA tokenization legal frameworks, designed to enforce transparency and stability through rigorous backing requirements and regulatory oversight. This legislative movement aims to reduce systemic risk and empower financial institutions, like banks, to issue regulated stablecoins and tokenize various assets.

Broader Context

The convergence of these events illustrates a pivotal period for the digital asset ecosystem. The exponential growth predicted for RWAs aligns with a broader trend of institutional engagement with blockchain technology, exemplified by initiatives like JPMorgan's Onyx platform, which utilizes blockchain for collateral settlements. The total stablecoin supply, having reached a record over $300 billion with a 46.8% year-to-date growth, further supports the infrastructure necessary for RWA expansion. Simultaneously, the positive resolution of international trade disputes often correlates with increased risk appetite across global markets, benefiting speculative assets like cryptocurrencies. The entry of crypto advocacy into local political campaigns suggests a maturing industry actively seeking to shape its regulatory future, moving beyond federal lobbying to influence policy at municipal levels, potentially creating localized hubs for digital finance innovation.