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- McKinsey predicts tokenized financial assets could hit $2T by 2030, with cash, bonds, and ETFs leading early adoption.
- Tokenization faces adoption challenges due to regulatory complexities but offers benefits like faster settlement and liquidity.
- Early movers in tokenization could gain market share with industry-wide adoption needing blockchain scalability and clear regulations.
Tokenized financial assets, despite a slow start, are projected to reach a $2 trillion market by 2030, according to McKinsey & Company analysts. They predict certain asset classes will adopt tokenization faster than others, with an optimistic scenario doubling the market to $4 trillion.
Analysts note significant momentum in tokenization, but widespread adoption remains distant due to the complexities of modernizing financial infrastructure, especially in a heavily regulated industry.
Cash, deposits, bonds, ETNs, mutual funds, ETFs, loans, and securitization are expected to be early adopters, potentially reaching $100 billion in tokenized market capitalization by 2030.
McKinsey excluded stablecoins, tokenized deposits, and CBDCs from their estimates. They acknowledged the “cold start problem,” where success depends on user adoption for value generation. Limited liquidity and fear of losing market share have hindered progress.
Tokenization must offer clear advantages over traditional finance, the analysts stressed. Tokenized bonds, while totaling billions, offer marginal benefits and limited secondary trading. Improved mobility, faster settlement, and increased liquidity could drive adoption.
Early movers could secure market share and influence standards, though many institutions remain hesitant. Indicators of a tipping point include blockchains handling trillions in volume and clear regulatory frameworks.
Tokenization is moving from pilots to large-scale deployments. Blockchain-equipped institutions can gain strategic advantages, capturing efficiencies, increasing liquidity, and creating new revenue. Despite challenges, the technology’s maturity and benefits are becoming evident.
BlackRock CEO Larry Fink sees tokenized digital assets as the future, predicting all financial assets on a single ledger. The first large-scale applications already transact trillions on-chain monthly. Mainstream integration requires robust, secure, and compliant systems, demanding cooperation across the financial sector.
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