Tokenization Growth Predicted to Surge in Financial Sector

Summary:
McKinsey & Company’s recent report suggests that the adoption of asset tokenization will occur in waves, beginning with assets like mutual funds, bonds, and loans. Although some institutions are currently adopting a "wait and see" approach, early adopters could capture significant market share. The report predicts that the tokenized asset market might reach $2 trillion by 2030 in a base scenario, but could go up to $4 trillion under more optimistic conditions, given favorable regulations and industry collaboration.
Despite growing interest and forecasts from other consulting firms like Boston Consulting Group and 21Shares suggesting a larger market, McKinsey remains cautious. The report identifies that tokenization is at a "tipping point," with many projects moving from pilot stages to scalable deployments. However, real estate, commodities, and equities may see slower tokenization due to marginal benefits and complex compliance issues.
Anthony Moro, CEO of Provenance Blockchain Labs, emphasized the significant technical integration required for blockchain technology, noting that while institutions recognize its future importance, substantial integration with existing processes is necessary.