Stablecoins and Tokenized Securities Set for Major Role in Post-Trade
Stablecoins and tokenized securities are poised to handle a significant part of global post-trade market turnover within the next five years, according to a recent report released by Citi. The bank's Securities Services Evolution survey, published on Tuesday, found that industry adoption of digital assets is progressing rapidly, though the sector has yet to reach a critical tipping point.
Survey Results Highlight Adoption Drivers
The survey polled 537 market participants, including custodians, banks, broker-dealers, asset managers, and institutional investors across several regions: the Americas, Europe, Asia Pacific, and the Middle East. Respondents noted that bank-issued stablecoins would be a primary tool to improve collateral efficiency and to support the growing use of tokenized funds and private market securities.
Liquidity and post-trade cost efficiencies were cited as leading motivations for investment in digital ledger technology (DLT). Most respondents expect blockchain to make a noticeable impact on these areas within the next three years. "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," Citi stated.
Regional Differences in Market Projections
Expectations for digital asset growth vary by region. In the United States, respondents anticipate 14% of all market turnover could be digital or tokenized assets by 2030. This figure stands at 10% for Europe and 9% for Asia Pacific. Citi attributed elevated American optimism to recent regulatory developments, including the passage of the GENIUS Act in July, and industry initiatives led by high-profile firms such as stablecoin issuer Circle and asset manager BlackRock.
Generative AI Gains Momentum in Post-Trade Operations
The report also details the growing adoption of generative artificial intelligence (GenAI) in post-trade processes. More than half of surveyed organizations are piloting GenAI for post-trade workflows, with 67% of institutional investors already using AI for reconciliation, reporting, clearing, and settlements. The technology is especially prominent in onboarding, where 83% of brokers, 63% of custodians, and 60% of asset managers report meaningful impact. Citi noted that streamlining onboarding could help bridge the gap between retail and institutional clients.
Outlook
Citi's findings suggest that while the global post-trade market maintains traditional systems, digital assets and advanced technologies are set to play a growing role. The bank expects industry momentum to continue, potentially placing digital assets at the core of capital markets operations within the next five years.
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