HSBC: 5-10% of assets will be tokenized 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.

Interpretation of this information:

The message states that HSBC and Northern Trust have predicted that between 5% and 10% of all assets will be tokenized by 2030. McKinsey’s data reveals that total assets under management (AUM) will be around $126 trillion in 2021, while BCG estimates the figure to be $112 trillion. Using a compound growth rate of 5%, the AUM will increase to approximately $195 trillion by 2030, and tokenization is expected to account for 5% to 10% of this amount.

Tokenization refers to the process of using blockchain technology to create digital tokens that can represent real-world assets such as stocks, bonds, and real estate. Tokenization is often touted as a way to simplify the trading and management of assets, increase transparency, and reduce costs. In recent years, there has been a growing interest in tokenization across various industries, including real estate, art, and financial services.

The prediction from HSBC and Northern Trust suggests that tokenization will be a major force in the asset management industry over the coming decade. If 5% to 10% of assets are tokenized by 2030, this represents a significant shift towards digital assets. The growth in tokenization could be driven by several factors, including increased investor demand for digital assets, improvements in blockchain technology, and regulatory changes that make tokenization more accessible to a wider range of investors.

McKinsey’s data on AUM is also interesting, as it highlights the significant growth expected in asset management over the next decade. AUM is expected to increase by almost $70 trillion by 2030, with tokenization accounting for a portion of this growth. This growth in AUM could be fueled by factors such as rising incomes and wealth, demographic changes, and the increasing importance of investment and retirement planning.

In summary, the three keywords from this message are tokenization, assets under management, and growth. The prediction of increased tokenization in the asset management industry highlights the potential for digital assets to play a more significant role in investment strategies. The data on AUM reveals the significant growth expected in the asset management industry over the next decade, with tokenization expected to be a contributing factor.