Banking on
digital assets

Blockchain-enabled digital assets are going mainstream. How can banks accelerate adoption?

When the mysterious Satoshi Nakamoto published the now-famous Bitcoin Whitepaper in 2008, did he, or they – Nakamoto is rumoured to be a pseudonym for a collection of authors – know they were helping to redefine finance?

The paper outlined the first peer-to-peer electronic cash system and was quickly followed by Nakamoto’s blockchain database in 2009 – the first of its kind. Almost 20 years later, blockchain underpins a digital ecosystem that is reshaping the financial sector.

Cryptocurrency (digital encrypted money not backed by a central bank or government), tokenised assets (a digital representation of a real-world or financial asset) and stablecoins (a cryptocurrency with a value pegged to a stable asset, like the US dollar) are all built on blockchain technology.

The benefits of digital assets are numerous. A tokenised real-world asset – a work of art, for example – can be divided into smaller, investible units, making high-value markets accessible to a broader range of investors. Stablecoins, meanwhile, can offer a less volatile alternative to individuals in markets where the local currency is prone to inflation.

Digital assets are available around the clock, reduce cross-border friction, and rely on fewer intermediaries than traditional financial systems.

The potential of this blockchain-backed technology is huge and continuing to grow in popularity. According to Statista, global revenue from digital assets is projected to reach USD100.8 billion in 2026, while the number of users is expected to approach 800 million by 2027.

What early motor cars can tell us about digital assets

The road to the tokenisation and digitalisation of money, and a world where digital wallets are widely used, is not necessarily a smooth one. Digital assets are still relatively new and there are issues hampering a broader adoption.

“Digital asset adoption is following a familiar technological-revolution cycle,” René Michau, our Senior Advisor, Digital Assets, explains: “Early motor cars contained the essential technology but were difficult to start and drive and the factories and distribution systems needed for scale had not yet been built.”

He continues, “Early aviation followed the same pattern, with wealthy hobbyists flying fragile experimental aircraft before the industry developed safe, accessible infrastructure.”

Infrastructure issues, such as bridging between blockchain and legacy systems, are only part of the problem. Standards and governance are also proving to be a sticking point for the development of blockchain-backed financial tools – this could especially be the case for those looking at digital assets as an investment opportunity.

“A key consideration for investors today is not only whether to invest in digital assets , but how to access them with ease, trust, and confidence,” says Samir Subberwal, Global Head, Wealth Solutions, Retail Products, Data & Analytics.

“As the asset class continues to mature, greater regulatory clarity and access through trusted, regulated institutions will be critical in supporting broader adoption.”

Reimagining the role of banks

Digital assets are reshaping the financial landscape and creating new opportunities for banks to extend their role in the economy. For institutions willing to evolve, the convergence of traditional finance and digital assets is presenting one of the most significant growth opportunities in decades.

As the ecosystem develops, the question is not whether banks will have a role to play, but how they can help shape and scale it. Banks bring trusted infrastructure, regulatory expertise, risk management, global networks and deep client relationships, all of which remain essential in a digital asset economy.

Rather than viewing traditional and digital finance as competing models, the greater opportunity lies in connecting the two. Banks can act as orchestrators of this transition, combining new digital capabilities with established financial infrastructure to enable institutional clients to participate in the digital asset economy with confidence.

“The opportunity for banks is about reimagining how value is issued, held, moved and settled through tokenised assets, digital money and increasingly programmable financial infrastructure,” Ole Matthiessen, our Global Head of Transaction Services & Digital Assets, explains.

“Our role is, therefore, to bridge today’s financial system with tomorrow’s: giving clients the benefits of digital assets without asking them to compromise on the trust and resilience they expect from a bank.”

Michau believes that the security and ease provided by banks is crucial in their ongoing participation. “Most people are unlikely to want the technical burden of self-management. Banks can therefore continue to play a constructive role by keeping clients’ money safe, putting it to work, enabling cross-border payments and creating credit through lending,” he says.

“There is no reason those functions could not be performed in a fully digital-asset ecosystem, provided banks master the new operating environment.”

This role is already taking practical shape. Across institutional and affluent client segments, Standard Chartered is building capabilities to support access to digital assets. For institutional clients, this includes digital asset trading and custody capabilities, while eligible affluent clients can access our new cryptocurrency trading solution through their existing banking relationship, supported by in-house institutional-grade custody and robust operational safeguards.

“As digital assets mature as an asset class, investors are increasingly considering how they can form part of a diversified investment portfolio that complements traditional assets such as equities, bonds, and gold. What was once a more niche investment theme is becoming a more established part of the wealth management conversation, as investors look at the role digital assets can play in meeting their broader investment objectives,” says Nicolas Rigois, Global Head, Capital Markets Products & Solutions, Wealth Solutions.

The opportunity for banks is about reimagining how value is issued, held, moved and settled through tokenised assets, digital money and increasingly programmable financial infrastructure.

Ole Matthiessen

Global Head of Transaction Services & Digital Assets

The future of financial services

Blockchain-enabled digital money such as tokenised assets, stablecoin and cryptocurrency have the potential to change the face of finance. Our experts discuss what the growth of digital assets means for businesses and individuals, and the importance of trust and transparency in an evolving financial future

Watch the video

AI is rapidly enabling adoption

So, what does the future hold? Will digital assets have the scale necessary to go to the next level? With AI already impacting our day-to-day, digital assets could similarly have a significant impact, if the right supporting conditions are in place.

Michau says: “The shift is comparable to the way photographs moved from physical albums to searchable digital libraries. Software can now identify and organise photographs because it can interact with them directly; programmable money will enable similar interaction with financial assets.”

This programmability could become increasingly important as AI develops. Once money and assets exist in digital form and on shared digital infrastructure, software and AI systems can interact with them more directly, helping to automate processes, execute transactions, and manage assets.

According to research from Nickel Digital Asset Management, some 94 per cent of institutional professionals believe AI will be important or critical to the future growth of the digital asset class.

“For routine spending, an AI-powered agent might recognise that a phone bill is due and request biometric confirmation before paying it. For longer-term money management, customers could set financial goals — such as funding a holiday, saving for a home or reducing debt — and use dashboards to track progress automatically as income arrives and spending occurs.”

The future of finance

It is clear Nakamoto’s Bitcoin paper, and the development of the first blockchain database, has left quite the legacy. However, Nakamoto’s legacy is more than the creation of Bitcoin. Digital assets are moving from experimentation to practical application, whether that’s improving access to investment opportunities, enabling more efficient cross-border payments or supporting financial inclusion.

“We’ve made significant progress in digital assets, but we have yet to achieve true institutional scale,” says Ying Ying Tan, Global Head of Securities Services and Global Head of Digital Assets. “Getting there will require greater regulatory clarity, stronger governance, interoperability and robust operational resilience. Most importantly, it will take a complete ecosystem – with more products and broader participation from both the buy side and sell side.”

For Tan, the transition will be gradual rather than binary. “Traditional and digital assets will coexist in a hybrid model for some time; the financial system cannot transform overnight. Our role as providers is to help clients navigate that transition – from digital twins and digital-first models towards, ultimately, fully digital-native finance.”

She points to tokenised money-market funds as one example already gaining momentum. “They combine familiar, regulated assets with the advantages of blockchain infrastructure, creating new possibilities for treasury management, institutional settlement and collateral optimisation.

“We are also seeing tokenised US Treasury funds used as yield-bearing collateral while remaining in regulated, off-exchange custody. These are practical examples of tokenised assets moving beyond investment products to become liquidity and collateral instruments.”

The potential is significant: Standard Chartered and Synpulse research estimates that demand for tokenised real-world assets could reach USD30.1 trillion by 2034, illustrating the scale of the opportunity as tokenisation moves into the mainstream.

In a multi-asset, multi-provider future, connectivity and interoperability will be essential. For custodians, the duty to safeguard clients’ assets remains unchanged, although fulfilling it will require greater digitalisation, cyber resilience and automation.

Where digital assets are making an impact

While these foundations are still being built, digital assets are already demonstrating their practical value in markets where access to stable currencies and financial services can be limited.

Michau concludes: “Some of the strongest adoption of crypto assets and stablecoins is already occurring in markets such as Nigeria, Ghana, Kenya, South Africa and India. A wallet address allows someone to receive US-dollar stablecoins directly, which can help protect purchasing power³ when the local currency is affected by high inflation.

“More infrastructure is still needed but the potential across Latin America, Africa, the Caribbean, the Pacific and parts of Asia is significant.”

The question is no longer whether digital assets will influence the future of financial services, but how banks, regulators, and customers adapt as they move into the mainstream.