Real-World Asset Tokenization Market Cap Could Reach $2 Trillion by 2030: McKinsey Report

• The market capitalization of tokenized real-world assets is anticipated to surpass $2 trillion by 2030, as stated by the consultancy firm McKinsey & Company.
• Depending on various scenarios, McKinsey’s projections for the sector range from a conservative $1 trillion to an optimistic $4 trillion by the end of this decade.
• “Numerous financial entities, from mutual funds to alternative asset managers, are propelling this growth, finding efficiencies and value in blockchain technology,” McKinsey analysts report.

McKinsey’s recent report forecasts that the market cap of tokenized real-world assets will skyrocket to $2 trillion by 2030, driven by increased adoption from financial institutions.

McKinsey Projects Exponential Growth for Tokenized Real-World Assets

McKinsey & Company has released a detailed analysis predicting the marketplace for tokenized real-world assets could exceed $2 trillion by the conclusion of this decade. Their projections estimate the market to range between $1 trillion and $4 trillion, depending on various adoption rates and economic factors.

Exclusion of Stablecoins and Other Digital Currencies

To provide a clear and precise forecast, McKinsey’s projection specifically omits stablecoins, tokenized deposits, and central bank digital currencies (CBDCs). This exclusion helps avoid any potential market overlap and presents a more accurate portrayal of the tokenized real-world assets sector.

Current Market Status and Future Growth Drivers

Back in 2018, the market cap for real-world tokenized assets was a modest $1.5 billion. This figure has seen a substantial increase, reaching $120 billion in recent years. Propelling this robust growth are multiple factors, including mutual funds, lending institutions, bond issuers, and exchange-traded notes (ETNs). According to McKinsey analysts, blockchain’s enhanced efficiency and regulatory feasibility are crucial driving forces behind this upsurge.

Comparative Market Capitalization Estimates

McKinsey’s conservative estimates are arguably moderate when juxtaposed with other industry projections. For instance, crypto investment firm 21Shares foresees the real-world asset (RWA) tokenization sector attaining valuations between $3.5 trillion and $10 trillion by 2030. Additionally, the Boston Consulting Group (BCG) envisions the tokenization of global illiquid assets to evolve into a business opportunity worth $16 trillion by the decade’s end.

Conclusion

The trajectory for tokenized real-world assets is set on a path of exponential growth, with predictions spanning from $1 trillion to a staggering $16 trillion by 2030. This growth is fuelled by widespread adoption among financial institutions and the inherent benefits that blockchain technology offers. As the market continues to mature, investors and stakeholders can anticipate significant advancements and opportunities in the tokenization sector.