Citi Predicts Crypto's Post-Trade Dominance: 10% Market Share by 2030

A new survey by Citi indicates a significant shift in the financial landscape, predicting that stablecoins and tokenized securities could capture 10% of the global post-trade market turnover within the next five years. This projection highlights the growing institutional acceptance and strategic implementation of digital assets.

Key Takeaways

Stablecoins and tokenized securities are expected to handle 10% of global post-trade market turnover by 2030.
Bank-issued stablecoins are seen as crucial for collateral efficiency and funding tokenization.
Generative AI (GenAI) is also poised to play a significant role in post-trade operations.

Digital Assets Poised for Transformation

The report, based on a survey of 537 financial professionals across various regions, suggests that the adoption of digital assets has moved beyond early experimentation to strategic implementation. Citi believes the industry is nearing a tipping point, anticipating a transformation in speed, cost, and resilience within the post-trade market.

Respondents identified liquidity and post-trade cost efficiencies as primary drivers for investing in digital ledger technology (DLT). A majority believe DLT will significantly impact funding costs, financial resource requirements, and operating costs before 2028, by increasing the velocity of securities in global capital markets.

Regional Expectations for Crypto Growth

Expectations for digital asset growth vary by region, with the United States leading the charge. The US market is predicted to see 14% of its market turnover conducted using digital or tokenized assets by 2030, compared to 10% in Europe and 9% in the Asia Pacific. This sentiment in the US is partly attributed to recent regulatory developments and the scaling efforts of major institutions like Circle and BlackRock.

The Role of Generative AI

Beyond digital assets, generative artificial intelligence (GenAI) is also expected to make a substantial impact on post-trade operations. Over half of the surveyed firms are piloting GenAI for post-trade activities, with 67% of institutional investors using it for reconciliation, reporting, clearing, and settlements. Onboarding is currently the most piloted use case for GenAI, with firms seeing it as a crucial step to bridge the gap between retail and institutional clients.

Sources

Crypto to Handle 10% of Post-Trades by 2030: Citi Survey, Cointelegraph.

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