Standard Chartered’s tokenization ambitions have evolved beyond the relatively pedestrian domain of stablecoins—those digital dollar proxies that merely digitize what already exists—into the considerably more intriguing territory of real-world asset tokenization.
The bank’s strategic pivot encompasses traditionally illiquid asset classes that have long frustrated investors with their exclusivity and opacity: private equity, venture capital, real estate, fine art, collectibles, and infrastructure projects.
This expansion represents more than technological showmanship; it addresses genuine market inefficiencies where high barriers to entry have historically confined participation to institutional heavyweights and the genuinely wealthy. The transformation involves a comprehensive tokenization workflow that begins with off-chain verification of asset details and legal ownership, followed by smart contract deployment to manage tokens securely and compliantly.
Trade finance presents another compelling application, with Standard Chartered publishing thorough research on how tokenization could revolutionize global commerce.
The digitization of trade documents and assets through blockchain technology promises faster, more transparent transactions while reducing costs—particularly beneficial for small and medium enterprises that have traditionally been marginalized in international trade financing.
The bank’s collaboration with China Asset Management (Hong Kong) demonstrates practical implementation, launching one of Asia Pacific’s first tokenized retail money market funds targeting early 2025.
Standard Chartered serves as custodian while leveraging SC Ventures’ Libeara platform for token issuance and securities services.
This initiative positions Hong Kong as a digital finance hub while conforming to regional regulatory frameworks—a delicate balancing act between innovation and compliance.
Perhaps most intriguingly, Standard Chartered partnered with OKX and Franklin Templeton to create a collateral mirroring program accepting cryptocurrency and tokenized money market funds as collateral.
This development enables tokenized assets to function within traditional financial operations, bridging the persistent gap between digital asset markets and conventional banking infrastructure. The programme’s pilot framework operates under Dubai Virtual Asset Regulatory Authority oversight, enhancing regulatory compliance while enabling institutional access to innovative collateral structures.
The bank’s acquisition of a digital asset license under EU MiCA regulation provides regulatory-compliant crypto custody solutions, reflecting broader institutional adoption trends. Standard Chartered has built its approach on Project Guardian contributions and Project Dynamo insights, sharing new research that addresses the unprecedented potential in trade finance tokenization.
These initiatives collectively represent Standard Chartered’s strategic embrace of Web 3.0 and decentralized finance technologies—a thorough digital transformation that extends far beyond simple token creation into fundamental restructuring of how financial markets operate, democratizing access while improving efficiency and transparency across previously fragmented asset classes.
