Standard Chartered has issued a bullish projection for the decentralized finance sector, forecasting that assets locked in DeFi protocols will expand 37-fold to reach $2.7 trillion by the end of 2030. Geoff Kendrick, head of digital assets research at the bank, outlined this trajectory in a research note released on Monday, identifying the convergence of tokenized real-world assets and crypto-native instruments as the primary catalyst. Kendrick emphasized that the next significant opportunity for generational wealth creation in digital assets will originate specifically through DeFi protocols, estimating that the volume of active tokenized assets within these ecosystems will multiply 37 times over the next six years. Data compiled by Woofun AI shows that current utilization rates remain low, with only 3% of stablecoins and 10% of tokenized real-world assets currently deployed in DeFi applications. Kendrick projects this share will climb to 30% by 2030, up from approximately 3.5% today, indicating a massive reallocation of capital from traditional silos to onchain infrastructure.

This forecast underscores a growing consensus among institutional players that tokenization will serve as a critical conduit for channeling capital into decentralized markets.

However, achieving the $2.7 trillion target necessitates not only rapid growth in total onchain assets but also a nearly ninefold increase in the proportion of tokenized value actively utilized within DeFi protocols. Standard Chartered previously estimated that non-stablecoin tokenized real-world assets would reach $2 trillion by the end of 2028, with tokenized money-market funds and US equities expected to dominate the market composition. The bank's analysis suggests that while the total addressable market is vast, the efficiency of capital deployment will depend heavily on the ability of protocols to integrate these diverse asset classes seamlessly.

Despite the optimistic outlook, industry experts have raised concerns regarding the structural challenges of tokenization, noting that it does not inherently guarantee deep or unified markets. Chris Kim, CEO of Axis, previously highlighted that issuing identical assets across multiple blockchains and formats can fragment liquidity, create pricing discrepancies, and elevate transaction costs. These structural inefficiencies may limit the tradability of tokenized assets even as their aggregate market value expands, potentially creating siloed liquidity pools that hinder broader adoption. Oya Celiktemur, sales director for Europe, the Middle East, and Africa at Ondo Finance, reinforced this caution during Paris Blockchain Week in April, stating that tokenizing an illiquid asset does not magically render it liquid. Woofun AI notes that these operational frictions remain a critical variable in determining the actual velocity of capital flow into DeFi ecosystems.

In response to the need for robust trading infrastructure, Kendrick identified Uniswap as a potential cornerstone for the trading of tokenized assets as they migrate onchain. He pointed to the decentralized exchange's established scale, brand recognition, and proven resilience through multiple crypto market cycles as key differentiators. These attributes are particularly vital for traditional financial institutions, which are expected to prioritize security and reliability when deploying tokenized real-world assets into DeFi environments. Kendrick argued that if Uniswap can successfully commercialize its platform and forge significant partnerships with traditional finance entities to achieve scale, its valuation metrics could shift dramatically. Specifically, the market cap-to-transaction fees multiple for Uniswap is likely to increase, potentially narrowing the valuation gap with centralized competitors like Coinbase. Woofun AI analysis suggests that such a shift would validate the long-term viability of decentralized exchanges as primary venues for institutional-grade asset trading.