Citi has released its fifth annual report on market developments, predicting the future of asset tokenization in the financial sector.
Key Findings from Citi's Report
The new report by Citi predicts that by 2030, 10% of global market turnover will be tokenized, largely driven by bank-issued stablecoins. It also highlights how automation through technology will address the T+1 settlement issue. The report is based on insights from 537 industry participants.
Impact of Digital Assets on Financial Operations
According to the report, 48% of projects are specifically optimizing processes for North American T+1 settlements, with 76% of respondents actively engaged in T+1 projects by 2025. "From accelerated settlements to automation in asset servicing, the collective vision of firms worldwide is converging on the same core themes," stated Chris Cox, Head of Investor Services at Citi.
Successes in the Asia-Pacific Region
The Asia-Pacific region has emerged as a leader in digital asset usage, with millions of cryptocurrency users. Regulators are already taking steps to implement digital asset projects. Japan's Financial Services Agency is preparing to approve the country’s first yen-backed stablecoin, which could significantly affect the demand for government debt.
Citi's report points to significant changes looming over financial markets due to asset tokenization and digital technology implementation, creating new opportunities for operational optimization in the financial sector.
