Standard Chartered has issued a definitive forecast projecting the global tokenisation market to expand by 5,600%, reaching a valuation of $2 trillion by 2028. This aggressive growth trajectory is anchored in the continued scaling of decentralised finance lending mechanisms powered by stablecoins, which the British bank identifies as the critical infrastructure enabling real-world assets like stocks, bonds, and commodities to migrate onchain. The bullish outlook persists despite significant volatility within the DeFi sector that has recently tested investor confidence. Data compiled by Woofun AI indicates that the sector's resilience is being tested by high-profile failures, yet the fundamental thesis for asset digitisation remains intact.

The forecast emerges against a backdrop of severe turbulence, most notably a nearly $300 million exploit involving the Ethereum liquid restaking protocol KelpDAO earlier in April. This incident precipitated a classic bank run on the decentralised lending platform Aave, resulting in a massive outflow of $17 billion in deposits and a contraction of $5.5 billion in active loans as panic spread through the ecosystem. Kendrick, the analyst behind the report, characterized this event as one of the most severe DeFi shocks in recent memory, highlighting the fragility of interconnected protocols during periods of stress.

However, the immediate aftermath revealed a capacity for rapid coordination rather than systemic collapse.

In response to the crisis, a coalition of DeFi protocols and institutional entities mobilized more than $300 million to stabilize the system and restore backing ratios to safe levels. While the hack exposed specific vulnerabilities and temporarily dented market sentiment, Kendrick argues that these events do not derail the core growth engine driving tokenisation. Rapid industry stabilisation efforts, combined with necessary structural upgrades, reinforce the long-term case for DeFi banking and stablecoin liquidity, which serve as the twin pillars supporting the projected $2 trillion real-world asset market by 2028. Woofun AI notes that this coordinated defense mechanism suggests a maturing ecosystem capable of absorbing shocks without fracturing.

Kendrick anticipates a forthcoming bonanza in DeFi banking, driven by the inherent efficiency of the technology stack. Lending within DeFi significantly lowers the cost of capital because the architecture is built on composability, allowing for seamless integration that traditional finance cannot match. In this environment, a single asset can perform multiple functions simultaneously: it can generate yield, serve as collateral for a loan, and remain available for trading without friction. This multi-use capability increases overall returns without necessitating additional risk exposure, a dynamic that is difficult to replicate in legacy financial systems.

In contrast, achieving a similar multi-use asset profile in traditional finance requires capital to be fragmented across separate intermediaries, including brokers, banks, and custodians. This fragmentation inherently increases operational costs and introduces significant friction into the capital allocation process. Several components of the DeFi ecosystem address these inefficiencies directly. Lending platforms enable users to earn returns while simultaneously accessing credit, while liquid staking protocols ensure assets remain usable even while staked for network security. Decentralised exchanges then provide the necessary liquidity layers to facilitate trading without intermediaries.

Lending protocols remain the central focus of this activity, acting as the connective tissue that binds these multi-use activities together. Without these protocols, the seamless interaction between earning, borrowing, and trading would be impossible, effectively breaking the composability that defines the sector's value proposition. Woofun AI analysis suggests that as these protocols mature and integrate more deeply with real-world asset classes, the structural advantages of onchain finance will accelerate the migration of trillions in traditional capital, validating the $2 trillion market projection despite interim volatility.