The esteemed consulting firm McKinsey & Company has projected that the market cap of real-world tokenized assets could reach $2 trillion by 2030. In their latest report, McKinsey analysts provide a range of $1 trillion to $4 trillion for the sector’s market cap by the end of the decade, encompassing both pessimistic and optimistic scenarios.

To ensure accurate calculations, the firm’s projection does not include stablecoins such as tokenized deposits, wholesale stablecoins, and central bank digital currencies (CBDCs). In 2018, the market cap of the real-world asset (RWA) sector was a mere $1.5 billion. However, it has rapidly grown to $120 billion this year, as reported in Reuters’ Practical Law journal.

McKinsey analysts anticipate that the future growth of this sector will be driven by adoption from mutual funds, lenders, bond issuers, exchange-traded notes (ETNs), financial institutions, and alternative funds. They believe that these entities are already experiencing significant adoption rates, supported by the efficiency and value gains provided by blockchain technology, as well as enhanced technical and regulatory feasibility.

It is worth noting that McKinsey’s predictions are relatively conservative compared to other reports published in recent years. In October of last year, crypto investment firm 21Shares estimated that the market value for the RWA sector would range between $3.5 trillion and $10 trillion by 2030. Additionally, earlier in 2023, the Boston Consulting Group (BCG) estimated that the tokenization of global illiquid assets would present a $16 trillion business opportunity by the end of the decade.

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