Citi Predicts a Transformation in the Global Post-Trade Market
A recent report from Citi reveals an optimistic projection for the global post-trade market, forecasting that in just five years, 10% of turnover will be processed through stablecoins and tokenised securities. This expectation is part of the bank’s Securities Services Evolution report, which surveyed 537 financial institutions across North America, Europe, Asia-Pacific, and the Middle East between June and July 2025, including custodians, banks, broker-dealers, asset managers, and institutional investors.
The report highlights the digital asset sector’s transition from early experimentation to a more mature phase of strategic implementation, although it has not yet reached a full tipping point. Citi describes the industry as being “tantalisingly close to a structural transition,” influenced by increasing engagement from significant players such as Circle and BlackRock, who are expanding their roles in digital liquidity infrastructure.
Notably, regions such as North America, Europe, and Asia-Pacific are leading the charge for adoption, buoyed by robust retail participation and regulatory alignment surrounding digital assets. Chris Cox, Head of Investor Services at Citi, underscores the significance of Australia’s recent adoption of the new ISO 20022 system, expected to modernise financial messaging formats globally.
Cox commented on the transformative changes occurring in asset servicing due to enhanced automation capabilities highlighted by the ISO 20022 standards, as countries like Singapore and Australia set the pace for greater efficiency. Other regions, including Hong Kong and Korea, are reportedly also planning similar upgrades to their platforms.
Evolving Legal Framework
On the regulatory front, notable changes are unfolding in the United States, particularly with the recent passage of the GENIUS Act, a legal framework designed for stablecoins, which was signed into law by President Donald Trump in July 2025. This significant step has prompted several major cryptocurrency companies, including Tether, to reconsider entering the US market, with Tether now developing a US-specific institutional stablecoin.
The report indicates that liquidity and post-trade cost efficiency are the primary motivators driving the adoption of distributed ledger technology (DLT). More than half of the surveyed firms view DLT as a means to increase securities velocity while lowering funding costs, capital requirements, and operational overheads by 2028.
Additionally, artificial intelligence (AI) is positioned as a key enabler within the sector. According to Citi’s findings, 86% of firms are experimenting with AI for client onboarding, with 57% exploring its application in post-trade processes.
In conclusion, as the digital asset landscape evolves, institutions are increasingly recognising the potential for significant operational improvements and efficiency through technological adoption. The confluence of regulatory support, corporate engagement, and technological innovation signals a transformative phase in the financial services sector. This evolution is expected to reshape traditional post-trade processes dramatically, setting a new standard for efficiency and speed in the market.
