McKinsey & Company Predicts Real-World-Asset Tokenization Market Cap Will Hit $2 trillion by 2030; Grayscale says cryptocurrencies will be in all investment portfolios
According to McKinsey & Company, the market cap of tokenized real assets could reach $2 trillion by 2030. John Hoffman, managing director of Grayscale, predicts that cryptocurrencies will be part of every investment portfolio in the next 20 years.
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.
John Hoffman, managing director of distribution and partnerships at Grayscale, acknowledged on the In search of Alpha Funding Summit that, throughout the subsequent 20 years, “cryptocurrencies shall be in each funding portfolio.”
The rising reputation of cryptocurrencies in the US is notable, with one in six Individuals proudly owning crypto propertyat a time when bitcoin (BTC) and different digital tokens have seen a major enhance in worth, the chief famous.
