In a recent report, HSBC and Northern Trust predict that 5%-10% of all assets will be tokenized by 2030. While they didn’t provide a dollar figure, our estimates equate this to $19.5 trillion, compared to the $16 trillion predicted by BCG last year. BCG’s forecast also anticipated that tokenization would reach 10% during the same time period.
According to McKinsey, the total assets under management in 2021 amounted to $126 trillion, compared to BCG’s figure of $112 trillion. Using McKinsey’s figure and a 5% compound growth rate gives AUM of around $195 trillion by 2030, with tokenization of five to ten percent of that figure.
However, tokenization could drive the growth in assets under management. One of the touted benefits of DLT is fractionalization. If an illiquid asset class previously required a $1 million minimum investment and that is reduced to $10,000, then the range of interested investors expands massively. And likely the assets under management as well.
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