The global post‑trade industry is poised for significant change as tokenized assets, accelerated settlement cycles and generative AI move from pilot projects toward production, according to Citi’s latest whitepaper and annual survey.
The bank surveyed 537 market participants — custodians, broker‑dealers and asset managers — and found a clear momentum behind digital instruments and automation. Citi estimates that by 2030 roughly 10% of market turnover could occur in tokenized form, with bank‑issued stablecoins cited as a key enabler for improved collateral efficiency and easier fund tokenization. The report also highlights that Asia‑Pacific is leading early adoption, driven by strong retail crypto interest and supportive regulatory initiatives.
Artificial intelligence is another accelerator: 86% of firms surveyed are testing AI for client onboarding — a high‑impact use case for custodians and asset managers — and 57% report pilots specifically aimed at post‑trade automation. Together with faster settlement cycles, these tools aim to cut manual work and reduce operational bottlenecks.
Speed is a driving force. As the industry shifts to T+1 settlement, firms face a compressed timeline for reconciliation, margining and corporate actions. Citi warns that automation, tokenization and GenAI adoption are converging to address that pressure. As Chris Cox, Head of Investor Services at Citi, put it, firms are aligning around accelerated settlements, asset servicing automation and broader digital adoption.
What to watch: tokenization promises liquidity and efficiency gains but brings new operational and regulatory questions — from custody models for tokenized securities to legal certainty across jurisdictions. Firms should prioritize robust controls, clear settlement protocols and compliance plans as they move pilots into production.
Source: CoinDesk. Read the original coverage for full details.