New analysis from McKinsey shows that the first large-scale tokenized transactions have moved trillions of dollars' worth of assets every month. These developments are not only reshaping existing financial services, but also creating innovative use cases that could redefine the market landscape. However, we have encountered many difficulties and challenges to date, McKinsey executives noted in the report. Further mainstreaming of these technologies in a robust, secure and compliant manner will require the cooperation and coordination of all relevant stakeholders. Despite the positive outlook, the path to widespread tokenization is challenging. The McKinsey researchers suggest that in the short term, institutions including banks, asset managers, and market infrastructure players should evaluate their product suites and determine which assets would benefit the most from transitioning to tokenized products. We recommend considering whether tokenization could accelerate strategic priorities, such as entering new markets, launching new products, and/or attracting new customers.