Tokenized Assets Projected to Achieve $2 Trillion Market Size by 2030, McKinsey Forecasts
Tokenized financial assets are expected to reach a market size of approximately $2 trillion by 2030, as projected by analysts from McKinsey & Company, a prominent consulting firm. Despite a slow initial uptake, McKinsey anticipates robust growth in the years ahead, even speculating a bullish scenario where market valuation could potentially double to $4 trillion, albeit with tempered optimism.
While acknowledging the momentum behind tokenization, McKinsey’s analysts caution that widespread adoption remains a distant goal. They highlight significant challenges in modernizing existing financial infrastructure, especially in heavily regulated sectors like financial services. McKinsey identifies several asset classes likely to lead in adoption, including cash, bonds, exchange-traded notes (ETNs), mutual funds, ETFs, loans, and securitization, with a projected market capitalization of $100 billion by 2030.
It’s important to note that McKinsey’s estimate excludes stablecoins, tokenized deposits, and central bank digital currencies (CBDCs). The analysts also address the “cold start problem” faced by tokenized assets, where perceived value and liquidity issues hinder broader acceptance, often resulting in dual issuances on traditional systems.
To overcome these obstacles, McKinsey emphasizes the necessity of compelling use cases that offer distinct advantages over conventional finance. For instance, tokenized bonds have been highlighted as a promising area, despite current limitations in secondary trading efficiency compared to traditional issuance methods.
McKinsey underscores the critical role of early adopters in driving market standards and industry evolution, citing examples such as Toucan, KlimaDAO, and Propy, which have significantly expanded user engagement in digital carbon markets and real estate tokenization. The RWA.xyz platform notably reported a record $1.29 billion locked in tokenized U.S. treasuries and bonds, reflecting an 80% increase since early 2024.
The inclusion of various assets across public and private blockchains continues to grow, with initiatives like Franklin Templeton’s U.S. Government Money Fund extending its reach from Stellar to Polygon, Backed Finance launching a tokenized ETF for short-term U.S. treasury bonds, and UBS Asset Management introducing a tokenized money market fund (MMF) on the Ethereum blockchain.
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