Odaily Planet Daily News Global consulting firm McKinsey & Company said in a recent report that by 2030, even in an optimistic scenario, the market for tokenized assets (RWA) may only be $4 trillion, as financial institutions are slower to use blockchain technology for traditional financial instruments and the range of assets than some optimistic reports predict. "Wide adoption of tokenization remains far away," the report said, noting that the figure could be as low as $1 trillion. "As infrastructure participants move from proof-of-concept to robust scale solutions, many opportunities and challenges remain to reimagine how financial services will operate in the future." The report said tokenization is at a "critical point" and many projects are moving from pilots to large-scale deployment. In its base case, the company estimates that the market size of the tokenized asset market will reach nearly $2 trillion by 2030, noting that this does not include tokenized deposits, stablecoins, and central bank digital currencies; and the optimistic expectation of $4 trillion needs to be supported by looser regulation, industry-wide cooperation, and no systemic events that hinder its adoption. According to the report, mutual funds, bonds, exchange-traded notes, repurchase agreements (repos), alternative funds, loans and securitization will lead the way in tokenization efforts, while assets such as real estate, commodities and stocks will be slower to adopt, citing reasons such as marginal benefits, concerns about feasibility, complex compliance requirements or a lack of motivation from major industry players to pursue tokenization. (CoinDesk)