Citi's report predicts that stablecoins and tokenized assets could radically alter global post-trade markets within five years, involving major financial institutions and advancements in AI automation.
Asia-Pacific Leads in Stablecoin Adoption
The report highlights that the Asia-Pacific region is a leader in stablecoin adoption due to regulatory support and retail demand.
Stablecoins Drive Collateral Efficiency
Stablecoins are expected to increase collateral efficiency, fueling tokenization and potentially altering institutional financial strategies.
T+1 Settlement and Operational Automation
The transition to T+1 settlement in the US indicates benefits of automation, essential for reducing margin risks and accelerating operational processes.
> "The transition to T+1 settlement increased the need for automation due to higher trade fail scrutiny and accelerated operational timelines." — *Citi Report*
The integration of automation and tokenized assets, alongside shifting market dynamics, may lead to significant changes in post-trade markets, particularly driven by the Asia-Pacific region.