Crypto - The RWA Market Will Reach $4 Trillion! According to McKinsey

In a rapidly changing crypto world, the tokenization of real-world assets (RWAs) represents a major advancement. McKinsey & Company recently released an analysis forecasting that the market for tokenized RWAs could reach a capitalization of $2 trillion by 2030. In an optimistic scenario, this figure could even double to reach $4 trillion.

Crypto: McKinsey forecasts $4 trillion for the RWAs market

McKinsey’s report indicates that crypto tokenization has reached a tipping point! This, with numerous projects moving from the pilot phase to large-scale implementation. As a result, in its base scenario, the company estimates that the market for tokenized assets will reach nearly $2 trillion by 2030. Of course, excluding tokenized deposits, stablecoins, and CBDCs from its calculation.

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

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 take place in several waves. The first wave will be driven by use cases with proven return on investment and existing scale. Mutual funds, bonds, exchange-traded notes (ETNs), loans, and securitization, as well as alternative funds, will be the pioneers of tokenization efforts.

However, widespread adoption of crypto tokenization is still far off. Modernizing existing infrastructure represents a major challenge, particularly in an industry heavy with regulations like financial services. Overcoming inertia will require coordination across the entire value chain.

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