According to McKinsey & Company, the market cap for real-world tokenized assets could reach $2 trillion by 2030. Their report provides a wide range of estimates, from $1 trillion to $4 trillion, for the growth of the real-world asset (RWA) tokenization sector over the next decade. The firm’s projection excludes stablecoins, such as tokenized deposits, wholesale stablecoins, and central bank digital currencies (CBDCs), in order to prevent double-counting.

In 2018, the RWA sector market cap was a mere $1.5 billion, but it has since surged to $120 billion this year, as reported in Reuters’ Practical Law journal. McKinsey analysts anticipate that the sector will continue to expand, driven by the adoption of mutual funds, lenders, bond issuers, exchange-traded notes (ETNs), financial institutions, and alternative funds. They attribute this growth to the efficiency and value gains from blockchain technology, as well as the increasing technical and regulatory feasibility.

While McKinsey’s predictions are considered conservative, other reports provide more optimistic outlooks. Last October, the crypto investment firm 21Shares estimated that the market value for the RWA sector could range between $3.5 trillion and $10 trillion by 2030. Similarly, the Boston Consulting Group (BCG) projected that the tokenization of global illiquid assets could become a $16 trillion business opportunity by the end of the decade in 2023.

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