Stablecoins and Tokenized Securities Set to Transform Global Post-Trade Market by 2030

According to Cointelegraph, a recent survey conducted by Citi predicts that stablecoins and tokenized securities will handle a tenth of the global post-trade market turnover within the next five years. The Securities Services Evolution report, released by the investment bank, highlights the growing role of bank-issued stablecoins in enhancing collateral efficiency, fund tokenization, and private market securities. The survey, which polled 537 custodians, banks, broker-dealers, asset managers, and institutional investors across the Americas, Europe, Asia Pacific, and the Middle East, reveals that over half of these firms are piloting generative artificial intelligence (GenAI) for post-trade operations. The post-trade market, responsible for verifying, executing, and finalizing securities trades, is witnessing increased interest in stablecoins following the U.S. government's regulatory actions earlier this year. Citi's report indicates that since 2021, the adoption of digital assets has evolved from initial experimentation to strategic implementation. While the industry has not yet reached a tipping point, the bank suggests it is "tantalizingly close" to a significant transformation in speed, cost, and resilience on a global scale. Survey participants identified liquidity and post-trade cost efficiencies as primary drivers for investing in digital ledger technology (DLT), with blockchain expected to significantly impact these areas within the next three years. Expectations for digital asset growth are notably higher in the United States, where 14% of market turnovers are anticipated to involve digital or tokenized assets by 2030, compared to 10% in Europe and 9% in the Asia Pacific. The U.S. market is projected to lead in market turnover using tokenized securities, influenced by regulatory changes such as the GENIUS Act, signed into law by U.S. President Donald Trump in July. The sentiment shift is further supported by leadership from major firms like stablecoin issuer Circle and asset manager BlackRock, which are instrumental in scaling digital liquidity. Generative artificial intelligence is also poised to impact the post-trade market, with 57% of respondents indicating their organizations are piloting GenAI technology for post-trade operations. A significant portion of institutional investors, 67%, are utilizing GenAI for post-trade reconciliation, reporting, clearing, and settlements. The technology is particularly prevalent in onboarding processes, with 83% of brokers, 63% of custodians, and 60% of asset managers employing it to create meaningful impacts. Citi emphasizes the importance of faster, cleaner onboarding as a crucial starting point to bridge the gap between retail and institutional clients.