Crypto – The RWA market will reach $4 trillion!  According to McKinsey

In a rapidly changing crypto world, the tokenization of real assets (RWAs) represents a major breakthrough. 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.

Crypto: McKinsey forecasts $4 trillion for the RAW market

McKinsey report says crypto tokenization has reached a tipping point! This, with many projects moving from pilot phase to full-scale implementation. As a result, in its base case scenario, the company estimates that the market for tokenized assets will reach nearly $2,000 billion by 2030. Excluding, of course, tokenized deposits, stablecoins and CBDCs from its calculation.

Furthermore, McKinsey's $4 trillion optimistic scenario would be supported by more accommodating regulations. But also, industry-wide collaboration and the absence of systemic events that could hinder adoption.

€20 bonus for registering on Bitvavo
This link uses an affiliate program

The major challenges of tokenization

Tokenization is the process by which the rights to an asset are converted into a digital token on a blockchain. According to McKinsey, the adoption of crypto tokenization will be done in several waves. The first wave will be driven by use cases with proven ROI and existing scale. Mutual funds, bonds, exchange-traded notes (ETNs), loans and securitization, and hedge funds will pioneer tokenization efforts.

However, widespread adoption of crypto tokenization is still far away. Modernizing existing infrastructure represents a major challenge, especially in a regulation-heavy industry like financial services. Overcoming inertia will require coordination across the entire value chain.

Although tokenization of real assets may seem promising, it faces significant challenges. Financial institutions and crypto investors must remain attentive to developments in this technology which could redefine the foundations of the global financial market.

Maximize your experience with our 'Read to Earn' program! For every article you read, earn points and access exclusive rewards. Sign up now and start earning benefits.

Click here to join 'Read to Earn' and turn your passion for crypto into rewards!

Similar Posts