The financial world is on the verge of a significant transformation, with cryptocurrencies and digital assets poised to disrupt traditional processes in the post-trade market. According to a recent survey conducted by Citi, as much as 10% of the global post-trade market turnover could be handled by tokenized securities and stablecoins by 2030.
Key Insights from Citi’s Report
In its Securities Services Evolution report, Citi revealed its findings from a survey of over 500 finance executives, including custodians, banks, broker-dealers, asset managers, and institutional investors. The survey, conducted between June and July, indicated that financial institutions globally are starting to embrace digital assets and blockchain technology as key drivers of efficiency in post-trade operations.
One of the standout conclusions was that bank-issued stablecoins are likely to become the main instruments for improving collateral management, driving fund tokenization, and enabling liquidity in private market securities. Furthermore, over half of the survey participants revealed their organizations are actively piloting generative artificial intelligence (GenAI) to enhance processes related to post-trades.
Why Digital Assets and Blockchain Are Game Changers
The post-trade market, responsible for executing, verifying, and finalizing securities trades, is being reimagined through blockchain and distributed ledger technology (DLT). Liquidity improvements and cost savings are the top reasons attracting investments in this technology. Respondents highlighted that DLT’s ability to speed up global securities transactions could significantly reduce funding costs and operating expenses before 2028.
The United States is leading the charge with an estimated 14% of post-trade market turnover projected to rely on tokenized assets by 2030, compared to 10% in Europe and 9% in the Asia Pacific. This surge in adoption is fueled by regulatory advancements, such as the GENIUS Act, signed into law earlier this year, which provides more clarity for digital asset regulation.
The Role of Generative AI in Financial Markets
In addition to blockchain, generative artificial intelligence is gaining traction in financial markets, especially in post-trade applications. According to Citi’s report, 57% of financial firms are exploring GenAI for operational efficiency. Popular use cases include reconciliation, reporting, clearing, and onboarding processes. These advancements are creating faster and more efficient transactions, closing the gap between retail and institutional investors.
What Lies Ahead for the Industry?
Although the adoption of digital assets and AI in finance is still in its early stages, its momentum is undeniable. Significant progress has been made since 2021, evolving from concept-stage experimentation toward strategic implementation. The next milestone will hinge on hitting a tipping point for mass adoption, which could be closer than anticipated.
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From blockchain’s potential to AI’s revolutionary applications, the financial landscape is on the cusp of groundbreaking innovation, promising a faster, more efficient, and secure experience for both institutions and investors alike.
