According to the consulting firm McKinsey & Company, the market cap of real-world tokenized assets is projected to reach $2 trillion by 2030. McKinsey analysts have provided a range of $1 trillion to $4 trillion for the market cap of the real-world asset (RWA) tokenization sector by the end of the decade, excluding stablecoins to avoid double-counting.

In 2018, the market cap of the RWA sector was just $1.5 billion, but it has since grown to $120 billion this year, as reported by Reuters’ Practical Law journal. McKinsey analysts anticipate further growth in the coming years, driven by adoption from mutual funds, lenders, issuers of bonds and exchange-traded notes (ETN), financial institutions, and alternative funds. They attribute this growth to the efficiency and value gains from blockchain, along with increased technical and regulatory feasibility.

While McKinsey’s predictions are considered conservative, other reports have projected even higher market values for the RWA sector. Last October, crypto investment firm 21Shares estimated the market value to be between $3.5 trillion and $10 trillion by 2030. Additionally, the Boston Consulting Group (BCG) estimated that the tokenization of global illiquid assets could be a $16 trillion business opportunity by the end of the decade.

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