Stablecoins to Transform Post-Trade Markets in Five Years
- Main players like Citi, regional adoption led by Asia-Pacific, increasing stablecoin integration.
- Stablecoins may reshape global post-trade markets within five years.
- Institutional engagement ramps up with tokenized assets and AI-driven automation.
Citi’s latest report predicts that stablecoins and tokenized assets will transform global post-trade markets within five years, involving major financial institutions and advancements in AI automation.
This shift could enhance operational efficiency and asset management, attracting significant capital investments and reshaping market dynamics.
Citi projects stablecoins and tokenized assets will transform global post-trade markets within five years, engaging major institutional players.
The report highlights a shift in market dynamics, potentially increasing efficiency and involvement by major institutions in using stablecoin technology.
Asia-Pacific Leads in Stablecoin Adoption, Citi Reports
Citi’s report predicts that stablecoins and tokenized assets could radically alter post-trade markets globally. Asia-Pacific is a leader in adoption due to regulatory and retail support.
Institutional players, including Citi, surveyed 537 industry actors and project substantial industry changes with AI integration and stablecoin pilot funding.
Stablecoins Drive Collateral Efficiency in Financial Markets
Stablecoins are expected to increase collateral efficiency, fueling tokenization and potentially altering institutional financial strategies. Asia-Pacific’s regulatory framework propels quick adoption.
The involvement of large institutions in the adoption process may lead to increased market efficiency and a shift towards tokenized assets in financial transactions.
T+1 Settlement in US Models Operational Automation
The transition to T+1 settlement in the US serves as a precedent, indicating benefits of reduced margin pressures and the need for operational automation.
“The transition to T+1 settlement in the US… increased the need for automation due to higher trade fail scrutiny and accelerated operational timelines.” — *Citi Report*
Past DLT experiments shifted from pilot phases to deployment, suggesting a strategic move from early experiments to common market practice in response to evolving demands.
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