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Tokenization of assets expected to grow by 2030

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It is reported that in a recent report, HSBC and Northern Trust predicted that by 2030, 5% – 10% of all assets will be tokenized. According to McKinsey\’s data,…

Tokenization of assets expected to grow by 2030

It is reported that in a recent report, HSBC and Northern Trust predicted that by 2030, 5% – 10% of all assets will be tokenized. According to McKinsey’s data, the total assets under management in 2021 will reach 126 trillion US dollars, while BCG’s figure is 112 trillion US dollars. Using McKinsey’s figures and a compound growth rate of 5%, the AUM will be about 195 trillion US dollars by 2030, with tokenization accounting for 5% to 10% of this figure.

HSBC: 5-10% of assets will be tokenized by 2030

Interpretation of the news:


In a recent report from HSBC and Northern Trust, it was predicted that by 2030, between 5% and 10% of all assets will be tokenized. Tokenization is a process where a physical or digital asset is turned into a token that can be traded on a blockchain platform. This process is predicted to become more prevalent over the next decade as blockchain technology and digital currencies continue to become more mainstream.

According to data from McKinsey, the total assets under management (AUM) in 2021 were predicted to be around $126 trillion US dollars. However, BCG predicted that this figure would be slightly lower at $112 trillion. Despite this discrepancy, both McKinsey and BCG agree that the AUM will grow over the next decade with a compound growth rate of 5%. By 2030, the AUM is expected to reach $195 trillion US dollars.

Based on this growth projection, the estimated value of tokenized assets will be between $9.75 trillion and $19.5 trillion US dollars by 2030. This makes up between 5% and 10% of the total AUM. This is a significant increase from the current size of the tokenized asset market.

The report from HSBC and Northern Trust points to various benefits of tokenization, including reducing the cost and time of transactions, increasing liquidity, and making fractional ownership of assets more accessible. This is particularly relevant for alternative assets, such as art, real estate, and private equity, which have traditionally been difficult to trade.

The prediction of a tokenized asset market between $9.75 trillion and $19.5 trillion US dollars by 2030 can have significant implications on different industries. For example, financial institutions and regulators will need to adapt and develop new systems that incorporate tokenized assets. This market growth can also lead to new investment opportunities for individuals and institutions.

In conclusion, the report from HSBC and Northern Trust suggests that the tokenization of assets will continue to grow over the next decade. With experts predicting that the AUM will reach $195 trillion US dollars by 2030, between 5% and 10% of all assets will be tokenized. This growth can result in various benefits to different industries and create new investment opportunities.

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