Survey reveals crypto's growing role in post-trade markets, predicts 10% turnover by 2030.
Contents
3 min read
Crypto Set to Revolutionize Post-Trade Markets by 2030
In a significant shift for global finance, cryptocurrencies and digital assets are projected to account for 10% of the post-trade market turnover by 2030, according to a recent survey conducted by Citi. The survey, which engaged over 500 finance executives worldwide, underscores the increasing integration of digital assets into traditional financial systems.
Stablecoins Lead the Charge
The report highlights the pivotal role of bank-issued stablecoins in enhancing collateral efficiency and enabling the tokenization of funds and private market securities. Stablecoins, which are digital currencies pegged to stable assets like the US dollar, are gaining traction as they provide a reliable medium for transactions and asset management. This trend aligns with recent regulatory developments in the United States, where stablecoins are being increasingly embraced following the passage of supportive legislation earlier this year.
Related: ConsenSys Survey Reveals Strong Crypto Adoption in Emerging Markets
Adoption and Innovation Drive Growth
Citi’s findings reveal that since 2021, the adoption of digital assets has transitioned from experimental phases to more strategic implementations. The momentum, however, is yet to reach a tipping point. The bank anticipates a transformative period for the post-trade industry, marked by increased speed, reduced costs, and enhanced resilience globally.
Notably, liquidity and cost efficiencies in post-trade operations are primary motivators for investments in digital ledger technology (DLT). The survey indicates that blockchain technology is expected to significantly impact these areas within the next three years, potentially lowering funding costs and operational expenses for financial institutions.
Regional Variations in Digital Asset Adoption
The survey also highlights regional differences in the anticipated adoption of digital assets. In the United States, financial executives predict that 14% of market turnovers will involve digital or tokenized assets by 2030, surpassing Europe’s 10% and the Asia Pacific’s 9%. This optimism is partly fueled by regulatory advancements, such as the GENIUS Act, which was signed into law by President Donald Trump in July, fostering a favorable environment for digital asset growth.
Generative AI’s Emerging Role
Related: Increased Crypto Allocations by Institutional Investors, Sygnum Survey Reveals
Generative artificial intelligence (GenAI) is also poised to play a crucial role in the evolution of post-trade markets. The survey reveals that 57% of organizations are piloting GenAI technologies for post-trade operations, with a significant focus on onboarding processes. This technology, which utilizes generative models to produce various forms of data, is expected to streamline operations and enhance client onboarding experiences.
As the financial sector continues to evolve, the integration of digital assets and innovative technologies like GenAI signals a transformative era for global markets. The insights from Citi’s survey provide a roadmap for financial institutions navigating this dynamic landscape.
For more details on the evolving role of digital assets and stablecoins in financial markets, refer to the Citi Securities Services Evolution Report and recent updates from Coindesk on US regulatory changes.
John is a renowned journalist and blockchain enthusiast with over 12 years of experience covering global financial trends and cryptocurrency markets. His sharp insights and ability to break down complex topics make him a cornerstone of finandcrypto.com. Known for his analytical skills, John is passionate about delivering content that empowers the crypto community.
