Standard Chartered Backs Smarter RWA Tokenization
Standard Chartered highlights the future of RWA Tokenization, urging innovation beyond gold and equities toward trade finance and real-world utility.
Standard Chartered recently emphasized that tokenization must go beyond traditional liquid assets like gold and equities. In fact, the bank cautioned that merely digitizing liquid instruments does not enhance blockchain utility. Moreover, tokenizing such assets duplicates existing infrastructure instead of unlocking unique advantages. Consequently, true real‑world asset tokenization demands focus on trade finance, supply-chain, and project-backed assets. According to Standard Chartered and Synpulse, the upcoming tokenization market could reach a staggering $30 trillion by 2034, with trade finance powering roughly 16 percent of that total.
Trade Finance: The Real Blockchain Opportunity
Firstly, trade finance bridges a $2.5 trillion global gap, rising through tokenization into digital trade assets. Then, Standard Chartered’s Project Guardian piloted a $500 million tokenized ABS, where invoices became NFTs tied to trade transactions on Ethereum. Furthermore, these tokens are diploma-like: programmable, self-liquidating, and requiring minimal default. Consequently, blockchain delivers tangible utility—speed, transparency, and smart-contract integration. Accordingly, focusing on such tradfi-backed assets offers far more value than tokenizing gold bars.
Regulatory Collaboration and Infrastructure Needed
Because regulation remains fragmented, Standard Chartered warns that cooperation across jurisdictions is essential. Meanwhile, sandbox programs like Singapore’s Project Guardian drive compliance and open-access infrastructure. Consequently, tokenizing illiquid assets like invoices and trade notes adds liquidity and democratizes access. Additionally, programmable tokens allow automated conditions—for example, funds are only released after delivery verification. Therefore, combining blockchain with regulated asset origination boosts capital efficiency and unlocks secondary markets.
Challenges Aren’t Small—but Rewards Are Greater
Still, the road ahead is challenging. For instance, tokenization requires robust custody, auditability, and legal structures. Meanwhile, smart contracts must seamlessly integrate off-chain verification and legal fallback layers. However, the potential payoff in capital access and operational efficiency is massive. Indeed, trade finance assets often yield low default rates and high recoveries compared to conventional credit. Thus, addressing these hurdles can unlock trillions in untapped liquidity.
Conclusion: RWA Tokenization Must Innovate
In conclusion, Standard Chartered makes a compelling case: tokenization should not replicate gold or equities. Rather, the focus must shift to liquid yet underserved assets such as trade finance, invoices, and supply chains. Moreover, programmable token models and regulatory alignment amplify value far beyond traditional tokenizing methods. Ultimately, successful RWA innovation lies in bridging tangible asset needs with blockchain strengths—creating genuine utility rather than superficial digitization.
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