Stablecoins & AI: Reshaping Crypto Post-Trade Landscape
Citi: Digital Assets and AI to Drive Post-Trade Evolution
Citi's latest "Securities Services Evolution" whitepaper suggests the global post-trade industry is on the verge of a significant transformation, fueled by the rise of digital assets and artificial intelligence.
The survey, which included responses from 537 market participants like custodians, broker-dealers, and asset managers, highlights the impact of tokenization, faster settlement cycles, and AI-powered automation on trade processing.
Tokenization and Stablecoins Take Center Stage
Citi estimates that 10% of market turnover could be executed through tokenized assets by 2030. The report emphasizes the crucial role of bank-issued stablecoins in facilitating collateral efficiency and fund tokenization. Asia-Pacific is currently leading in adoption, driven by strong retail crypto interest and favorable regulatory environments.
AI-Driven Efficiency in Post-Trade Operations
The report also points to AI's growing influence on post-trade efficiency. Key findings include:
- 86% of surveyed firms are testing AI for client onboarding.
- 57% are piloting AI specifically for post-trade activities.
T+1 and the Need for Speed
The post-trade industry is prioritizing speed and automation to manage the demands of moving to T+1, which requires securities transactions to settle one business day after the trade date.
Industry on the Cusp of Change
According to Chris Cox, Head of Investor Services at Citi, the industry is "at the cusp of significant change as market participants intensify their focus on T+1, accelerate the adoption of digital assets, and implement GenAI across their operations."