A recent report by McKinsey & Company predicts that the market cap of real-world tokenized assets could reach $2 trillion by 2030. While this is a conservative estimate, other reports have offered higher projections for the sector’s market value. The RWA industry has seen significant growth in recent years, with its market cap increasing from $1.5 billion in 2018 to $120 billion today, according to a report in Reuters’ Practical Law journal.
McKinsey analysts believe that future growth in the industry will be driven by adoption from mutual funds, lenders, issuers of bonds and exchange-traded notes (ETN), financial institutions, and alternative funds. These institutions are finding greater efficiency and value gains from blockchain technology, making adoption rates material.
While McKinsey’s predictions are conservative, other reports have offered higher estimates for the market value of the RWA sector. Last October, crypto investment firm 21Shares estimated that the market value could be between $3.5 trillion and $10 trillion by 2030. The Boston Consulting Group (BCG) also projected a significant business opportunity, estimating that the tokenization of global illiquid assets could reach $16 trillion by the end of the decade.
Investors should conduct their own research and due diligence before making high-risk investments in Bitcoin, cryptocurrency, or digital assets. It is important to be aware of the risks associated with trading and transferring cryptocurrencies and digital assets. The Daily Hodl does not provide investment advice and encourages individuals to be cautious when investing in this volatile market.
