Standard Chartered Combines Tokenization Expansion With Zodia Custody Acquisition

Standard Chartered expects the market for tokenized assets on blockchain networks to grow to approximately $4 trillion by 2028 as adoption of digital asset infrastructure continues accelerating globally.

According to the bank’s projections, the market is expected to be driven primarily by the expansion of established decentralized finance (DeFi) protocols alongside the growing use of stablecoins and tokenized real-world assets.

The estimates suggest the market could eventually split almost evenly between stablecoins and tokenized real-world assets, reflecting what may become a gradual transition from traditional financial infrastructure toward blockchain-based financial systems.

DeFi Protocols Expected to Drive Tokenization Growth

Standard Chartered analysts believe decentralized finance will remain one of the primary engines behind the expected growth, particularly as institutional activity across blockchain-based lending and liquidity platforms continues expanding.

As an example of the sector’s momentum, the bank pointed to BlackRock’s BUIDL fund, which has reportedly reached approximately $2.85 billion in assets and has increasingly been viewed as one of the clearest institutional examples of tokenized treasury exposure operating on blockchain infrastructure.

The bank also highlighted growing lending activity across major DeFi platforms. According to data referenced in the report, lending volumes on Aave have at times reached between $1.5 billion and $2 billion per day, while a joint lending product developed by Coinbase and Morpho reportedly climbed to nearly $1.75 billion.

The figures point to increasing institutional demand for blockchain-based financial infrastructure and decentralized lending products.

Regulatory Momentum and the Role of the CLARITY Act

On the regulatory front, Standard Chartered said potential passage of the proposed CLARITY Act in the United States could become one of the most significant catalysts accelerating the migration of assets from traditional financial systems into decentralized finance infrastructure.

The legislation has recently advanced through the Senate Banking Committee, reflecting growing political attention toward digital asset regulation in the United States.

According to the report, the long-term success of tokenized financial markets will depend heavily on whether blockchain protocols can continue delivering scalable and secure infrastructure capable of supporting institutional-grade activity.

Despite rapid growth, the bank noted that traditional off-chain financial assets still outweigh tokenized assets by a margin estimated at nearly one thousand times larger.

Standard Chartered Integrates Zodia Custody Into Digital Assets Strategy

In parallel with its market forecasts, Standard Chartered has also approved the acquisition and integration of digital asset custody platform Zodia Custody as part of a broader restructuring effort focused on consolidating digital asset services within the bank’s financial services and securities division.

Under the restructuring plan, direct client custody activities will be integrated into the bank’s operational infrastructure in a move aimed at improving efficiency and reducing operational costs.

At the same time, the infrastructure-focused business will continue operating independently through a separate entity known as Zodia Solutions under the supervision of SC Ventures.

“This acquisition will accelerate the growth of Standard Chartered’s global digital assets custody portfolio and support the growth of our Financing and Securities Services business,” explained Margaret Harwood-Jones, Global Head, Financing and Securities Services at SC.

Standard Chartered is expected to retain a significant ownership stake in the business. Prior to the restructuring, SC Ventures reportedly held approximately 70% ownership in Zodia Custody alongside institutional investors including Northern Trust and Bank of N.T. Butterfield.

Tokenization and Financial Infrastructure Begin Converging

The combination of Standard Chartered’s long-term tokenization forecasts and its deeper integration of digital custody infrastructure suggests that major banks are increasingly viewing blockchain technology as a structural transformation of financial markets rather than a temporary experimental trend.

As tokenized assets continue expanding toward a multi-trillion-dollar market, financial institutions are gradually restructuring operational infrastructure to participate directly in blockchain-based financial systems instead of remaining external observers.

The shift also suggests that competition in coming years may increasingly center around institutions capable of building integrated custody, settlement, and tokenization infrastructure rather than simply offering traditional financial products.

Blockchain-Based Finance Moves Closer to Mainstream Markets

The broader developments indicate that the current evolution of tokenized assets and decentralized finance extends beyond the growth of a new asset class and increasingly points toward a gradual restructuring of financial intermediation itself.

When a major global banking institution projects a $4 trillion tokenized asset market while simultaneously integrating digital custody infrastructure into its core operations, it signals that parts of the traditional financial system are beginning to rebuild around blockchain-based infrastructure from within.

At the same time, the long-term success of tokenized finance may depend less on technological capability and more on whether regulators and financial institutions can balance efficiency, innovation, investor protection, and operational oversight as blockchain-based financial markets continue maturing globally.