Standard Chartered has released a forecast that the total value locked (TVL) in decentralized finance (DeFi) will reach $2.7 trillion by 2030. The bank points to tokenized assets as the primary driver behind this growth.
Tokenized assets as the main catalyst
The projection hinges on the expansion of tokenized real-world assets — such as bonds, real estate, and commodities — being brought onto blockchain networks. Standard Chartered sees this as a key factor that will push DeFi TVL from its current level of roughly $50 billion to the $2.7 trillion mark over the next six years.
Three enablers for growth
The bank identified three critical enablers that must come together for the forecast to materialize: broader adoption of DeFi protocols, improvements in security, and sustained institutional interest. Without progress in each of these areas, the $2.7 trillion target may remain out of reach.
Security has been a persistent concern in DeFi, with high-profile hacks and exploits costing users billions. Standard Chartered's analysis suggests that as security measures mature, more capital will flow into decentralized platforms. Institutional interest, meanwhile, has been growing steadily, with major financial firms exploring DeFi for lending, trading, and asset management.
What the forecast means for the sector
The projection from a major global bank signals that DeFi is no longer a niche experiment but is being taken seriously by traditional finance. If the $2.7 trillion figure is realized, it would represent a roughly 50-fold increase from today's TVL. The timeline to 2030 gives the industry room to address the technical and regulatory hurdles that still exist.
Standard Chartered's report does not specify which blockchain networks or protocols will capture the most value, nor does it break down the forecast by year. The bank's view is that the combination of tokenized assets and the three enablers will create the conditions for exponential growth.
The DeFi sector now faces the challenge of delivering on that promise while avoiding the security failures that have plagued it in the past.
