McKinsey forecast: the market for asset tokenization is expected to be just under $2 trillion by 2030

June 21 (Bloomberg) -- McKinsey Company's latest forecast shows that the market for asset tokenization is expected to be less than $2 trillion by 2030, with a range of $1 to $4 trillion, a figure well below the $16 trillion predicted by the Boston Consulting Group (BCG) two years ago, Ledger Insights reported. By comparison, Bernstein and Citibank predict the market will reach $5 trillion by 2028 and 2030, respectively. McKinsey noted that financial innovations such as credit cards and ETFs demonstrated a 100% annual growth rate for the first five years, followed by a slowdown in growth to 50%, so a 75% CAGR was used for the forecast.

The report highlights that money market funds, loans and securitization, bonds and repo markets have made significant progress in tokenization, and that these areas are the first wave of tokenization that could reach significant scale. According to McKinsey, the repo market has already achieved a "minimum viable value chain" (MVVC), which, unlike a minimum viable product, emphasizes a value chain where multi-party blockchain transactions need to run on the same ledger or interoperable blockchain.