Citi's report forecasts that stablecoins and tokenized securities could handle a tenth of the global post-trade market turnover within five years, driven by technological advancements and regulatory changes.
Rise of Stablecoin Adoption
According to survey results, bank-issued stablecoins are viewed as the primary means to enhance collateral efficiency, fund tokenization, and trade private market securities. The survey covered 537 institutions across various financial sectors.
Shifts in Liquidity and Costs
Respondents highlighted liquidity and post-trade cost efficiencies as key drivers for investments in distributed ledger technology. Blockchain is expected to significantly impact these areas within the next three years.
Generative AI in Post-Trade
57% of respondents indicated that their organizations are exploring the application of generative AI in post-trade processes. This technology is seen to potentially improve processes such as reconciliation and reporting significantly.
In conclusion, anticipated changes in the post-trade sector are linked to both new technology applications and regulatory adjustments, potentially leading to efficient investments and process optimization.
