According to analysts at McKinsey & Company, tokenized financial assets are currently experiencing a slow start, but are expected to grow to a market size of $2 trillion by 2030.
In a best case scenario, this value could potentially double to $4 trillion. Despite being less optimistic than previously, the analysts still see visible progress in the adoption of tokenization.
However, widespread adoption is still a distant possibility as upgrading the existing financial infrastructure, particularly in the heavily regulated financial services industry, is a challenging task.
The analysts predict that assets such as cash and deposits, bonds and ETNs, mutual funds and ETFs, loans, and securitizations will be the first to see significant adoption, with a total tokenized market capitalization of around $100 billion by 2030.
The analysts’ estimation excludes stablecoins, tokenized deposits, and central bank digital currencies (CBDCs).
