Citi Sees Tokenized Securities Market Reaching $5.5 Trillion by 2030

Citi projects the market for tokenized securities could grow to $5.5 trillion by 2030, with major Wall Street infrastructure firms and the expanding stablecoin market serving as key drivers of real-world asset tokenization.

CoinDesk reported on June 1 that Citi, in a recent report titled "Tokenization 2030: Wall Street onchain," said the real-world asset tokenization market, currently about $17 billion, could reach $5.5 trillion by 2030 under its base-case scenario. Depending on the pace of adoption, Citi sees the market ranging from $2.7 trillion to $8.2 trillion.

Citi identified participation by traditional financial infrastructure providers as a major catalyst for broader tokenization. The Depository Trust & Clearing Corp., or DTCC, plans to start limited production transactions in tokenized securities in July and expand the related platform in October. Nasdaq is preparing a blockchain-based stock issuance system, while Intercontinental Exchange Inc., the owner of the New York Stock Exchange, is also advancing plans related to tokenized equities.

The bank also said growth in the stablecoin market could boost demand for tokenized securities. Citi expects the standardized stablecoin market to reach $1.9 trillion by 2030. Because stablecoin issuers hold U.S. Treasuries as reserve assets, that growth alone could lift demand for onchain U.S. Treasuries to as much as $1 trillion.

Citi expects tokenization to be concentrated in public markets such as U.S. Treasuries and listed equities rather than private markets. The report estimates that by 2030, 10% of the U.S. short-term Treasury market and 3% of the U.S. listed equity market could be tokenized. It also says demand for tokenized stocks could reach $2.6 trillion if just 10% of U.S. retail investors shift to digital trading platforms.

Citi added that the traditional financial system and the digital financial system are likely to operate in parallel for the time being. In that environment, large banks and investment firms that control both real-world assets and digital payment networks could gain a structural advantage.