The post McKinsey & Company forecasts a $2 trillion market cap for tokenized real-world assets (RWA) appeared on BitcoinEthereumNews.com.

McKinsey & Company predicted a $2 trillion market cap for tokenized real-world assets (RWAs) by 2030. The study indicated that the conservative market cap could double to $4 trillion in a bullish scenario. Boston Consulting Group (BCG) and 21Shares predicted an even larger market cap of $16 trillion and $10 trillion, respectively.   Also read: AI Impact on Jobs: McKinsey Research Reveals Insights and Recommendations. An alternate study also showed that the tokenized real-world assets (RWAs) market grew from $1.5 billion to $120 billion between 2018 and 2024. According to McKinsey’s report, the growth strongly implied the market’s further expansion. The report aligns with the current market situation where mutual funds, lenders, financial institutions, alternative funds, and exchange-traded notes have increasingly adopted tokenization. Tokenized real-world assets (RWA) increase in popularity McKinsey’s report revealed that many institutions are still in the “wait and see” mode despite the evident growth in RWA tokenization. The management consulting firm also pointed out that early movers could capture significant market shares.  The McKinsey report highlighted that a faster transition of tokenized financial assets from pilot to deployment is achievable when clear plans are established beforehand. It also revealed that financial institutions were strategically embracing blockchain technology.   “Blockchain technology is still in its early days and requires a considerable amount of integration with existing processes and standards. Most institutions recognize tokenization needs to be a large part of their business moving forward, but technical integration is where the rubber meets the road.” -Anthony Moro, CEO of Provenance Blockchain Labs The report further discussed the need for collaboration between market infrastructure players and financial institutions. McKinsey proposed this was necessary to create a viable value chain should the market continue to embrace tokenized RWA. Multiple factors influence RWA tokenization Potential Adoption Scenarios of Tokenized RWA McKinsey & Company McKinsey’s…

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Filed under: News - @ June 23, 2024 4:24 pm