McKinsey & Company Predicts Real-World-Asset Tokenization Market Cap Will Hit $2,000,000,000,000 by 2030

The market cap of real-world tokenized assets could grow to $2 trillion by 2030, according to the international consulting giant McKinsey & Company.

McKinsey analysts note in a new report that their pessimistic to optimistic range for the real-world asset (RWA) tokenization sector stretches from $1 trillion to $4 trillion in market cap by the end of the decade.

To avoid double-counting, the firm’s projection excluded stablecoins, including tokenized deposits, wholesale stablecoins and central bank digital currencies (CBDCs).

The RWA sector market cap was only $1.5 billion in 2018 and has grown to $120 billion this year, according to a recent report in Reuters’ Practical Law journal.

McKinsey analysts predict that future growth this decade will be driven by adoption from mutual funds, lenders, issuers of bonds and exchange-traded notes (ETN), financial institutions and alternative funds.

“For many of these, adoption rates are already material, underpinned by greater efficiency and value gains from blockchain along with higher technical and regulatory feasibility.”

The consulting firm’s predictions are conservative compared to other reports that have been published in recent years.

Last October, the crypto investment firm 21Shares estimated that the market value for the RWA sector will be between $3.5 trillion and $10 trillion by 2030.

Earlier in 2023, the Boston Consulting Group (BCG) estimated that the tokenization of global illiquid assets would be a $16 trillion business opportunity by the end of the decade.

 

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