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Citi Predicts Stablecoin Surge in Post-Trade Markets
The post-trade market is on the brink of a major transformation, with stablecoins and tokenized securities poised to account for 10% of global market turnover within the next five years, according to Citi’s latest Securities Services Evolution report.
Digital Assets Gaining Institutional Traction
The report, based on a survey of 537 industry participants—including custodians, banks, broker-dealers, asset managers, and institutional investors—highlights a significant shift in sentiment toward digital assets. Citi notes that since 2021, the industry has moved from “early experimentation to strategic implementation,” indicating growing confidence in blockchain’s long-term impact.
“After years of groundwork, the global post-trade industry looks set for a period of transformation in speed, cost and resilience on an international scale,” the bank stated.
Stablecoins Seen as Key Enabler
Bank-issued stablecoins were identified as the leading instruments to enhance collateral efficiency and enable tokenization of funds and private market securities. Liquidity improvements and lower post-trade costs were cited as primary incentives for investment in distributed ledger technology (DLT).
Citi emphasized that “more than half of the survey’s respondents are clearer than ever that the ability of DLT to increase the velocity of securities around the world’s capital markets can have major impacts on their funding costs, financial resource requirements and operating costs before 2028.”
Expectations for digital asset turnover were highest in the U.S., projected at 14% by 2030, compared to Europe’s 10% and Asia Pacific’s 9%. Regulatory advancements, including the GENIUS Act signed into law in July, have played a key role in driving this momentum.
Generative AI Enhancing Operations
The survey also revealed strong interest in generative AI (GenAI), with 57% of firms piloting it for post-trade processes. Applications include reconciliation, reporting, clearing, and settlements—highlighting the technology’s growing role in operational efficiency.
