Markets
The RWA market will reach $4 trillion! According to McKinsey
2pm ▪ 3 minute read ▪ by Eddy S.
In a rapidly evolving crypto world, tokenization of real-world assets (RWA) represents a major advancement. McKinsey & Company recently published an analysis predicting that the tokenized RWA market could reach a capitalization of $2 trillion by 2030. In an optimistic scenario, this figure could even double to $4 trillion.
Cryptocurrencies: McKinsey predicts $4 trillion RWA market
McKinsey report indicates that cryptographic tokenization has been achieved a turning point! This, with numerous projects moving from the pilot phase to large-scale implementation. As a result, in its baseline scenario, the company estimates that the market for tokenized assets will reach almost $2 trillion by 2030. Of course, this excludes tokenized deposits, stablecoins and CBDCs from its calculation.
Furthermore, McKinsey’s optimistic $4 trillion scenario would be supported by more accommodative regulations. But also industry-wide collaboration and the absence of systemic events that could hinder its adoption.
The main challenges of tokenization
Tokenization is the process by which rights to an asset are converted into a digital token on a blockchain. According to McKinsey, the adoption of cryptographic tokenization will take place in several waves. The first wave will be driven by use cases with proven return on investment and at existing scale. Mutual funds, bonds, Exchange Traded Notes (ETNs), lending and securitization, as well as alternative funds, will pioneer tokenization efforts.
However, widespread adoption of cryptographic tokenization is still a long way off. Modernizing existing infrastructure represents a major challenge, especially in a heavily regulated sector such as financial services. Overcoming inertia will require coordination across the entire value chain.
While tokenization of real-world assets may seem promising, it faces significant challenges. Financial institutions and cryptocurrency investors must remain vigilant to developments that may occur in this technology redefine the foundations of the global financial market.
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Eddy S.
The world has evolved and adaptation is the best weapon to survive in this wavering universe. The crypto community manager at the base interests me in everything that touches or comes close to the blockchain and its derivatives. With a view to sharing my experience and getting to know a domain that I am passionate about, I am the one who writes informative and décontractés a la fois articles.
DISCLAIMER
The views, thoughts and opinions expressed in this article are solely those of the author and should not be relied upon as investment advice. Do your research before making any investment decisions.