Standard Chartered has initiated coverage of Arbitrum, arguing that the blockchain network could be well positioned to benefit as traditional financial institutions move more assets and activity onchain. The bank described Arbitrum as having a “unique advantage” in helping traditional finance operators enter blockchain markets.
The research comes from Geoff Kendrick, Standard Chartered’s global head of digital assets research. The bank forecasts the tokenized equity market could reach roughly $750 billion by the end of 2028, representing about a 250-fold increase from the level cited in its research.
The equity forecast sits inside an even larger tokenization thesis. Standard Chartered expects total tokenized assets, including stablecoins and other real-world assets, to reach approximately $4 trillion by the end of 2028, compared with about $340 billion when the bank made its assessment.
For Arbitrum, the significance is its positioning as infrastructure rather than simply another blockchain competing for retail users. The bank sees an opportunity for Arbitrum’s technology stack to be adopted by financial companies that want to build dedicated blockchain networks without developing an entire stack from scratch.
Robinhood Chain is one of the examples highlighted in the research. The chain launched in July using Arbitrum technology, and Standard Chartered estimates Arbitrum could receive approximately $5 million in September fees through its Arbitrum Expansion Program at the then-current run rate.
The bank’s thesis is based partly on this business model. Under the expansion programme, chains using Arbitrum’s technology stack pay a rolling fee equivalent to 10% of net protocol revenue, creating a potential source of income as more financial companies deploy their own blockchain networks.
ARB Gets a Long-Term Institutional Bull Case
Standard Chartered’s valuation targets reflect that expected growth. The bank sees ARB at $0.50 by the end of 2026, $1.50 in 2027, $3.50 in 2028, $6.50 in 2029 and $10 by the end of 2030. ARB was trading around $0.13-$0.14 when the research was published.
The $3.50 target for 2028 is therefore the relevant figure when discussing the bank’s tokenized-equity forecast for that year. The $10 target belongs to the bank’s longer-term 2030 outlook and would represent roughly 70 times the token’s price around the time coverage began.
Standard Chartered believes Arbitrum could benefit if traditional financial institutions increasingly choose blockchain infrastructure to launch tokenized securities, funds and other financial products. Its research points to the growth of enterprise chains as a potentially important source of future revenue.
That thesis is already gaining support from developments outside Arbitrum itself. Nasdaq recently invested $100 million in Payward, the parent company of Kraken, as part of an initiative to develop tokenized equity infrastructure, while other major exchanges are also exploring blockchain-based stock markets.
The broader tokenized-equity market remains tiny compared with conventional stock markets. Reuters recently estimated digital equities at around $3 billion, compared with roughly $27 trillion in monthly traditional equity trading. That enormous gap is precisely why a 250-fold growth forecast can look possible while still requiring substantial adoption.
Standard Chartered’s thesis is not without risks. The bank identifies slower-than-expected tokenization, competition from other blockchain networks and ARB’s current lack of direct value accrual as important challenges. Those factors could prevent the token from capturing the economic value created by growth in the underlying market.
That last point is particularly important for ARB holders. More activity on Arbitrum does not automatically translate into proportional value for the token. The investment case depends on whether the network’s revenue model, expansion programme and future token economics allow ARB to capture enough of the value generated by institutional adoption.
Still, the research puts Arbitrum directly into one of the biggest emerging narratives in financial markets. Tokenized equities are moving from experimental projects toward infrastructure involving banks, exchanges, brokers and fintech companies.
If Standard Chartered’s forecast proves even partly accurate, the tokenized-equity market could become dramatically larger by 2028. Arbitrum’s ability to provide infrastructure for TradFi operators could then become a major part of its investment story, but the $3.50 and $10 targets remain forecasts rather than guaranteed outcomes. The next test will be whether more major financial institutions follow Robinhood into the Arbitrum ecosystem and turn the tokenization thesis into measurable network revenue.
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