Standard chartered predicts a fourfold increase in the market capitalization for digital assets, which will reach $10 trillion by the US midterm elections in late 2026.
What happened: According to a new note from Geoffrey Kendrickhead of research at Standard Chartered, this growth forecast is based on expected regulatory shifts following an expected Republican victory in the recent election cycle, which could lead to mainstream adoption and real-world adoption of digital assets.
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“To me, the Trump-Ublican sweep means that digital assets will finally come of age,” said Kendrick, expressing confidence that favorable regulatory policies will drive adoption across the asset class. He added: “I expect the entire asset class to reach 4x by the time of the US interim rate at the end of 2026.”
Standard Chartered highlights several factors contributing to this growth projection.
These include potential regulatory changes, such as a repeal of SAB 121 and favorable stablecoin regulations, which the bank expects to come into effect shortly after the new government takes office in January 2025.
Additionally, Standard Chartered expects the SEC to take a softer regulatory stance on digital assets, further opening avenues for mainstream use.
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The report also suggests that assets are closely linked to practical, end-use scenarios Solana (CRYPTO: SOL), which the bank expects to outperform Bitcoin (CRYPTO: BTC), and Ethereum (CRYPTO:ETH) – will likely see the most significant growth.
Kendrick sees strong growth potential for sectors such as gaming, tokenization and emerging areas such as decentralized physical infrastructure (DePIN) and social consumer sectors, which he notes are still in their early stages of development.
Additionally, while Standard Chartered considers a US Bitcoin reserve as a low-probability event, it notes that this move, if implemented, could have a significant impact on the digital asset market.
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Kendrick emphasizes that the regulatory clarity and adoption policies expected from a Trump administration could improve the entire asset class, creating an environment conducive to the mainstream of digital assets.
