Tokenization and AI Set to Reshape Post-Trade Markets by 2030

Citi Securities Services has projected that tokenized assets and digital currencies could account for 10% of post-trade market turnover by 2030, according to a recent survey of 537 institutional participants across the Americas, Europe, Asia Pacific, and the Middle East [2]. The findings, detailed in the bank’s Securities Services Evolution report, highlight custodians as key enablers of tokenization, particularly as institutions anticipate operating on multiple blockchains within the same timeframe. The survey indicated that 63% of respondents expect their organizations to function across multiple blockchain networks by 2030 [1]. This growing interest is driven by the potential for blockchain technology to enhance liquidity, reduce post-trade costs, and streamline settlement processes, with more than half of participants citing significant impacts from digital ledger technology (DLT) by 2028 [2].

The report also emphasized the role of stablecoins in facilitating tokenized securities and collateral efficiency. Bank-issued stablecoins were highlighted as a primary mechanism to support capital market operations, especially in fund tokenization and private market securities [2]. The United States, in particular, showed higher expectations, with 14% of market turnover projected to involve tokenized or digital assets by 2030—surpassing the 10% forecast for Europe and the 9% for the Asia Pacific region. This shift has been attributed to recent regulatory developments, such as the enactment of the GENIUS Act, as well as increased participation from major firms like Circle and BlackRock in advancing digital liquidity solutions [2].

In parallel, generative artificial intelligence (GenAI) is emerging as a transformative force in the post-trade landscape. Nearly 60% of respondents indicated that their organizations are piloting GenAI for post-trade operations, with more than half using it for reconciliation, reporting, clearing, and settlements [2]. The most prominent use case reported was onboarding, with 83% of brokers, 63% of custodians, and 60% of asset managers leveraging the technology to improve efficiency. Citi noted that these developments could bridge the gap between retail and institutional clients by streamlining client acquisition and service delivery [2].

Looking ahead, Citi described 2025 as a pivotal year for post-trade markets, with increased focus on trade cycle automation, digital money adoption, and evolving central securities depository (CSD) models [3]. The report warned that while T+1 settlement pressures have eased compared to 2024, trade fail rates and settlement discipline remain critical challenges. A notable 31% of participants reported ongoing pressure from trade fails, particularly among firms outside North America [3]. The bank also emphasized the need for global standardization in settlement instruction formats and CSD functionality to support the transition to more efficient systems.

The findings indicate a broader shift toward tokenization, automation, and AI-driven solutions in post-trade operations. As digital assets move from experimental to strategic adoption, the market is nearing what Citi describes as a “tipping point”—albeit one that remains just out of reach [2]. With over half of surveyed institutions already experimenting with multiple blockchains and AI, the industry appears poised for a period of accelerated innovation and transformation in the coming years [1].

Source:

[1] Citi Securities Survey Finds Custodians Are Central to TradFi Tokenization (https://www.ledgerinsights.com/citi-securities-survey-finds-custodians-are-central-to-tradfi-tokenization/)

[2] Crypto to Handle 10% of Post-Trades by 2030: Citi Survey (https://cointelegraph.com/news/citi-tokenized-assets-stablecoins-genai-2030-trading-forecast)

[3] Citi: 2025 is a Pivot Year for Mission Critical Post-trade (https://finadium.com/citi-2025-is-a-pivot-year-for-mission-critical-post-trade-services/)