The Digital Future of Finance
Citi expects the tokenized assets market to grow from $17 billion to $5.5 trillion by 2030.
The tokenization of securities could fundamentally transform the way financial markets operate within the next few years. According to Citi’s latest report, the market for tokenized assets is expected to expand from its current value of $17 billion to $5.5 trillion by 2030. Depending on the pace of adoption, estimates range from $2.7 trillion to as much as $8.2 trillion.
Tokenization involves transferring traditional financial assets, such as stocks and bonds, onto blockchain networks. Citi believes the technology is now moving beyond the testing phase and is beginning to be integrated into the day-to-day operations of financial institutions.
One of the main drivers of this rapid growth is the involvement of major capital market participants. DTCC has announced plans to launch limited trading of tokenized securities in July, with a full platform rollout scheduled for October. Nasdaq is developing a blockchain-based solution for issuing shares, with the project potentially going live as early as 2027. Similar initiatives are also being explored by the owner of the New York Stock Exchange.
Another key factor is the expansion of stablecoins. Citi forecasts that the stablecoin market will reach $1.9 trillion by 2030. Digital cash is expected to enable near-instant settlement of transactions, while its growing adoption could generate around $1 trillion in additional demand for U.S. Treasury securities.
Clearer regulations for digital assets in the United States are also playing an important role. According to the report, greater legal certainty could accelerate the adoption of blockchain-based solutions across the financial sector.
Citi estimates that by 2030, 10% of the U.S. Treasury bill market and 3% of the U.S. public equity market will be tokenized. If just 10% of American retail investors were to migrate to new digital platforms, demand for tokenized equities could reach $2.6 trillion.
The transition, however, will not happen overnight. For some time, traditional financial systems are expected to operate alongside new blockchain-based infrastructures. Citi compares this process to the introduction of electronic toll collection systems, where cash-payment lanes and automated payment lanes coexisted for many years.
The biggest beneficiaries of this transformation could be large banks and investment firms, which are likely to control both digital assets and the payment infrastructure required to support them.
