adoption

Tokenized Financial Assets Expected to Reach $2 Trillion Market Size by 2030

The Big Whale

— 1 min read
  • Tokenized financial assets could reach $2 trillion by 2030, potentially doubling to $4 trillion.
  • McKinsey analysts see slow adoption due to challenges in modernizing financial infrastructure.
  • Assets like mutual funds and bonds expected to lead tokenization with $100 billion market cap by 2030.
  • Derivatives and stocks less likely to be widely tokenized, according to McKinsey.
  • Tokenization faces liquidity issues and needs clear benefits over traditional finance systems.
  • Early movers in tokenization could gain market share and set industry standards.

Summary :
According to analysts at McKinsey & Company, tokenized financial assets are expected to reach a market size of around $2 trillion by 2030. In a bullish scenario, this value could double to $4 trillion. The analysts noted that while there has been visible momentum in tokenization, broad adoption is still far away due to challenges in modernizing existing financial infrastructure, especially in a heavily regulated industry like financial services. They predicted that cash and deposits, bonds, exchange-traded notes (ETNs), mutual funds, exchange-traded funds (ETFs), loans, and securitization would be the first to see meaningful adoption, with a projected $100 billion of tokenized market capitalization by 2030. Derivatives and stocks were seen as the least likely to be widely tokenized. The analysts also highlighted the need for tokenization to offer benefits over traditional finance systems, such as greater mobility, faster settlement, and more liquidity. Early movers in tokenization could capture an oversized market share and set the agenda on standards. However, many institutions are still in a "wait and see" mode. The analysts identified signs of a tipping point for tokenization, including blockchains capable of supporting trillions of dollars in volume and seamless connectivity, as well as regulatory clarity on data access and security.

Sources :

- CoinTelegraph
- Coindesk
- Blockworks

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