According to McKinsey & Company, the market capitalization of real-world tokenized assets could reach $2 trillion by 2030. In their recent report, McKinsey analysts provide a range of $1 trillion to $4 trillion for the market cap of the real-world asset (RWA) tokenization sector by the end of the decade, excluding stablecoins and central bank digital currencies (CBDCs) to avoid double-counting.
In 2018, the market cap of the RWA sector was only $1.5 billion, but it has grown to $120 billion this year, as reported by Reuters’ Practical Law journal. McKinsey analysts anticipate that future growth in the sector will be driven by the adoption of mutual funds, lenders, bond issuers, exchange-traded notes (ETN), financial institutions, and alternative funds. They believe that these entities will benefit from the efficiency and value gains provided by blockchain technology, along with improved technical and regulatory feasibility.
While McKinsey’s predictions are considered conservative, other reports have presented more optimistic figures. Last October, crypto investment firm 21Shares estimated that the market value of the RWA sector could range from $3.5 trillion to $10 trillion by 2030. Additionally, the Boston Consulting Group (BCG) projected earlier this year that the tokenization of global illiquid assets could present a $16 trillion business opportunity by the end of the decade.
It is important to note that the opinions expressed in this article are not investment advice, and investors should conduct their own research before making any high-risk investments in Bitcoin, cryptocurrency, or digital assets. Transfers and trades in these assets carry their own risks, and any losses incurred are the responsibility of the individual. The Daily Hodl does not endorse the buying or selling of cryptocurrencies or digital assets, nor do they provide investment advice.
