{"id":14611,"date":"2024-06-24T12:16:02","date_gmt":"2024-06-24T09:16:02","guid":{"rendered":"https:\/\/forklog.com\/en\/mckinsey-projects-tokenized-asset-market-to-reach-1-9-trillion-by-2030\/"},"modified":"2024-06-24T12:16:02","modified_gmt":"2024-06-24T09:16:02","slug":"mckinsey-projects-tokenized-asset-market-to-reach-1-9-trillion-by-2030","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/mckinsey-projects-tokenized-asset-market-to-reach-1-9-trillion-by-2030\/","title":{"rendered":"McKinsey Projects Tokenized Asset Market to Reach $1.9 Trillion by 2030"},"content":{"rendered":"<p>The volume of tokenized assets is projected to reach $1.9 trillion by 2030, despite a &#8220;cold start,&#8221; according to <a href=\"https:\/\/www.mckinsey.com\/industries\/financial-services\/our-insights\/from-ripples-to-waves-the-transformational-power-of-tokenizing-assets\">McKinsey<\/a>.<\/p>\n<p>In a more optimistic scenario, this figure could double, though analysts have become more skeptical about its likelihood. A pessimistic outlook suggests growth to $0.8 trillion.<\/p>\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" src=\"https:\/\/u1f987.com\/wp-content\/uploads\/1-1074.webp\" alt=\"1-1074\" class=\"wp-image-235451\"\/><figcaption class=\"wp-element-caption\">Source: McKinsey.<\/figcaption><\/figure>\n<p>Experts noted that tokenization has gained &#8220;significant momentum,&#8221; but widespread adoption of the technology is not yet underway.<\/p>\n<p>They added that modernizing existing financial infrastructure is &#8220;complex, especially in a heavily regulated industry like financial services.&#8221;<\/p>\n<p>Analysts estimate that the following asset categories will surpass the $100 billion mark:<\/p>\n<ul class=\"wp-block-list\">\n<li>mutual and exchange-traded funds;<\/li>\n<li>loans and securitization;<\/li>\n<li>bonds and <span data-descr=\"exchange-traded note\" class=\"old_tooltip\">ETN<\/span>;<\/li>\n<li>alternative asset funds.<\/li>\n<\/ul>\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" src=\"https:\/\/u1f987.com\/wp-content\/uploads\/2-817.webp\" alt=\"2-817\" class=\"wp-image-235450\"\/><figcaption class=\"wp-element-caption\">Source: McKinsey.<\/figcaption><\/figure>\n<p>Stablecoins, deposit tokens, and CBDCs were excluded from the calculations.<\/p>\n<p>McKinsey noted that tokenization faces the typical &#8220;cold start problem,&#8221; requiring initial investments from users.<\/p>\n<p>The technology struggles with limited liquidity, hindering the spread of instruments. Due to fears of losing market share, issuers may release tokenized assets while simultaneously utilizing <span data-descr=\"traditional finance\" class=\"old_tooltip\">TradFi<\/span> infrastructure.<\/p>\n<p>Analysts added that use cases are needed where there are advantages over traditional financial systems. They cited bond tokenization as an example.<\/p>\n<p>Currently, the market for such instruments has reached billions of dollars. Their advantages over traditional issuances are minimal, and secondary trading remains &#8220;sparse.&#8221;<\/p>\n<p>To change the situation, experts suggested developing a use case where the digital representation of collateral provides greater mobility, faster settlements, and increased liquidity.<\/p>\n<p>According to specialists, early adopters who &#8220;catch the wave&#8221; of tokenization can secure a large market share, enhance their reputation, and play a key role in setting standards. Many institutions are currently in a wait-and-see position.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>&#8220;There are indicators suggesting that tokenization has reached a tipping point. These include blockchain capable of processing trillions of dollars, seamless connectivity between networks, and the development of a regulatory framework providing clear guidelines on data access and security,&#8221;<\/em> the experts concluded.<\/p>\n<\/blockquote>\n<p>Over the past year, Fortune 100 companies have increased the number of supported blockchain initiatives by 39% to a &#8220;record level,&#8221; according to Coinbase. Corporations are also focusing on the tokenization of RWA.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The volume of tokenized assets is projected to reach $1.9 trillion by 2030, despite a &#8220;cold start,&#8221; according to McKinsey. In a more optimistic scenario, this figure could double, though analysts have become more skeptical about its likelihood. A pessimistic outlook suggests growth to $0.8 trillion. Source: McKinsey. Experts noted that tokenization has gained &#8220;significant [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":14610,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"","news_style_id":"","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1282,1229,1600,167,1308],"class_list":["post-14611","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-asset-tokenization","tag-banks-and-fintech","tag-mckinsey","tag-research","tag-rwa"],"aioseo_notices":[],"amp_enabled":true,"views":"45","promo_type":"","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/14611","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=14611"}],"version-history":[{"count":0,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/14611\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/14610"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=14611"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=14611"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=14611"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}