Citi Predicts Post-Trade Industry Transformation with Digital Assets, Accelerated Settlements, and AI Adoption

Citi's "Securities Services Evolution" whitepaper forecasts the post-trade industry's transformation in speed, resilience, and cost efficiency. Key findings include the adoption of digital assets, accelerated settlements, and the use of artificial intelligence. Bank-issued stablecoins are expected to be a key enabler, with 10% of market turnover expected to be conducted using digital assets and tokenized securities by 2030. The cumulative workload of T+1 settlements is significant, and automation is critical for T+1 readiness in the UK and Europe. GenAI use is also increasing, with 86% of respondents piloting the technology for client onboarding and post-trade operations.

Citi's latest "Securities Services Evolution" whitepaper provides a comprehensive outlook on the future of the post-trade industry, emphasizing the transformative impact of digital assets, accelerated settlements, and artificial intelligence (AI). The whitepaper, released on September 2, 2025, reveals key insights from 537 industry leaders, including financial market infrastructures (FMIs), custodians, banks, broker-dealers, asset managers, and institutional investors [1].

One of the most significant findings is the projected growth of digital assets. By 2030, 10% of global market turnover is expected to be conducted using digital assets and tokenized securities, with bank-issued stablecoins identified as a key enabler to support collateral efficiency, fund tokenization, and private market securities [1]. This shift is particularly driven by the extensive retail adoption of cryptocurrencies and regulatory efforts in the Asia Pacific region, which has led the way in digital asset adoption [1].

Accelerated settlements, represented by the T+1 initiative, are also a focal point of the whitepaper. The cumulative workload of T+1 settlements is significant, with 76% of respondents actively working on T+1 initiatives in 2025, and 48% still running projects to optimize their internal processes for North American T+1 settlements [1]. Automation is critical for T+1 readiness, especially in the UK and Europe, where improved internal operational processes, harmonization of industry and regulatory standards, and upgrading or re-platforming legacy technology are top enablers [1].

The whitepaper also highlights the increasing adoption of GenAI in post-trade operations. Eighty-six percent of respondents are piloting GenAI, with client onboarding being the key use case for asset managers, custodians, and broker-dealers [1]. Furthermore, 57% of organizations are piloting GenAI for post-trade operations, and 67% of institutional investors are using GenAI for post-trade reconciliation, reporting, and clearing and settlements [1].

Chris Cox, Head of Investor Services at Citi, noted, "The industry is at the cusp of significant change as market participants intensify their focus on T+1, accelerate the adoption of digital assets, and implement GenAI across their operations. At Citi, we are not just observing these shifts. We are actively empowering our clients to seize opportunities and deliver value through the strategic deployment of our digital and data solutions" [1].

Amit Agarwal, Head of Custody at Citi, added, "The accelerating shift towards digital assets and GenAI are clear signals that clients are future-proofing their businesses and operating models. As the whitepaper suggests, custodians are expected to be the largest agents of securities tokenization for network use by 2030, and are well-placed to do so as part of their safekeeping role. As digital and traditional assets converge, Citi is developing innovative capabilities and solutions to address the growing demand for digital asset custody services" [1].

In conclusion, Citi's "Securities Services Evolution" whitepaper underscores the transformative potential of digital assets, accelerated settlements, and AI in the post-trade industry. These trends are poised to drive significant changes in speed, resilience, and cost efficiency, setting the stage for a new era in financial services.

References:
[1] https://www.stocktitan.net/news/C/citi-whitepaper-global-post-trade-industry-poised-for-further-miq40huby26v.html
[2] https://www.businesswire.com/news/home/20250902754607/en/Citi-Whitepaper-Global-Post-Trade-Industry-Poised-for-Further-Transformation-Driven-by-Digital-Assets-Accelerated-Settlements-and-the-Adoption-of-AI