Citigroup expects the tokenized asset market to expand from approximately $17 billion currently to $5.5 trillion by the end of the decade, signaling the emergence of blockchain technology as a major part of capital markets and completely changing the function of cryptostreams.
The bank’s report, titled “Tokenization 2030: Wall Street on Chain,” outlines different scenarios regarding how quickly cross-chain settlement can be implemented in institutional operations.
Plumbing on Wall Street continues
What separates these predictions from previous token hype are the players behind the infrastructure. the Depository and Clearing Institutionwhich handles post-trade settlement for nearly all U.S. stocks, announced in May that it would facilitate initial production trades for tokenized securities in July 2026, with the full service planned to launch in October. more than 50 companies She joins DTCC’s industry working group, including BlackRock, Goldman Sachs, JP Morgan, Morgan Stanley, Circle, Ondo Finance and Robinhood.
Nasdaq It is building a blockchain-based stock issuance system. Exchange between continentswhich owns the New York Stock Exchange, is also taking its own steps to tokenize stocks. The simultaneous moves by three of the major institutions within the current market system indicate something more important.
“The industry has moved beyond the talk,” Nadine Shukr, managing director and global head of DTCC Digital Assets, said during a panel discussion at Consensus 2026 in May. “Tokens now move on-chain in production environments.”
Stablecoins as a demand driver
City Report It links tokenization’s growth directly to the stablecoin market, which the bank expects to reach $1.9 trillion by 2030. Since stablecoin issuers hold US Treasuries as reserve assets, this expansion alone could generate up to $1 trillion of new demand for on-chain government debt.
Communication is important for crypto markets. The growth in the number of stablecoins has become one of the main drivers behind cryptocurrency activity, and Citibank’s forecast appears to be another step towards the integration of traditional and blockchain finance systems. More treasury-backed stablecoins in circulation means more liquidity flowing through on-chain venues.
Citi expects TradFi and digital finance to coexist
According to CitiThe phenomenon of tokenization will occur mostly in the form of public assets rather than privately owned assets. It expects it to reach 10% in the short term Treasury bills In the US, an additional 3% of all listed stocks could end up being tokenized by 2030. If even 10% of US retail investors switch to digital trading platforms, demand for tokenized stocks could reach $2.6 trillion.
This focus on public markets is important when considering competition between blockchain networks in terms of attracting institutional capital. According to site analysis Canizares Center for Emerging Markets At Cornell University, tokenized stocks will allow emerging market investors to enter US markets by circumventing capital controls and expensive brokerage services.
Citi expects the traditional financial system and the digital financial system to work side by side for the foreseeable future. In this environment, the bank believes that large institutions that control real-world assets and digital payment networks gain a structural advantage.
