McKinsey: Optimistically estimated that the tokenized RWA market will reach $4 trillion by 2030

Global consulting firm McKinsey & Company said in a recent report that by 2030, even in an optimistic scenario, the market for tokenized assets (RWA) could be only $4 trillion, as financial institutions adopt blockchain technology for traditional financial instruments at a slower pace and across a wider range of assets than some sanguine reports predict. “Broad adoption of tokenization remains far away,” the report said, noting that the figure could be as low as $1 trillion. “As infrastructure players move from proofs of concept to robust scale solutions, many opportunities and challenges remain to reimagine how financial services will operate in the future.” The report said tokenization is at a “tipping point” with many projects moving from pilots to large-scale deployment. In its base case, the firm estimates that the market for tokenized assets will reach nearly $2 trillion by 2030, noting that this does not include tokenized deposits, stablecoins, and central bank digital currencies; and the optimistic expectation of $4 trillion needs to be supported by more relaxed regulation, industry-wide cooperation, and the absence of any systemic events that hinder its adoption. According to the report, mutual funds, bonds, exchange-traded notes, repurchase agreements (repos), alternative funds, loans and securitization will lead the way in tokenization efforts, while assets such as real estate, commodities and stocks will be slower to adopt, citing reasons such as marginal benefits, concerns about feasibility, complex compliance requirements or a lack of motivation from major industry players to pursue tokenization. (CoinDesk)