Tokenized Assets to Reach $2 Trillion Market Size by 2030, McKinsey Predicts
Tokenized financial assets are poised to achieve a market size of approximately $2 trillion by 2030, according to analysts at consulting firm McKinsey & Company.
In a recent report, the analysts noted that while the adoption of tokenization has had a slow start, they anticipate significant growth in the coming years.
They even suggest a bullish scenario where the market value could double to around $4 trillion, although they remain slightly less optimistic than before.
The analysts acknowledged the visible momentum behind tokenization but emphasized that widespread adoption is still a distant reality.
Modernizing existing financial infrastructure poses a challenge, particularly in heavily regulated industries like financial services.
McKinsey’s analysts identified several asset classes that are likely to experience meaningful adoption first, including cash and deposits, bonds and exchange-traded notes (ETNs), mutual funds, exchange-traded funds (ETFs), loans, and securitization.
They projected a tokenized market capitalization of $100 billion for these asset classes by 2030.
It is important to note that the analysts’ estimate does not include stablecoins, tokenized deposits, and central bank digital currencies (CBDCs) in their assessment.
The analysts highlighted the “cold start problem” faced by tokenization, where tokenized assets require users to perceive their value.
Limited liquidity and concerns about losing market share often discourage tokenized issuances, leading to parallel issuances on legacy systems.
To overcome these challenges, tokenization needs compelling use cases that offer clear advantages over traditional finance systems.
One such example mentioned by McKinsey’s analysts is the tokenization of bonds, which has
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