The global post-trade landscape is on the brink of a seismic shift, driven by the twin engines of stablecoins and artificial intelligence. According to Citi’s recently unveiled “Securities Services Evolution” whitepaper, this transformation promises to redefine how trades are processed, with Asia-Pacific leading the charge due to its robust retail crypto interest and supportive regulatory environment.
Tokenization and Stablecoins: A New Era
Citi’s report, grounded in insights from a diverse group of 537 market stakeholders—including custodians, broker-dealers, and asset managers—paints a vivid picture of the future. It suggests that by 2030, a notable 10% of market turnover could be conducted through tokenized assets. Central to this vision are bank-issued stablecoins, which are poised to revolutionize collateral efficiency and fund tokenization. This aligns with recent insights that stablecoins offer Beijing what e-CNY can’t in cross-border use, highlighting their growing strategic importance.
Here’s the catch: while the potential of stablecoins to streamline operations is immense, their widespread adoption hinges on overcoming regulatory hurdles and gaining trust among traditional financial institutions. “The role of stablecoins is pivotal,” remarks Chris Cox, Citi’s Head of Investor Services. “But we must navigate the complex regulatory landscape to unlock their full potential.”
AI: The Efficiency Catalyst
Artificial intelligence is another game-changer in the post-trade industry. Citi’s findings reveal that a staggering 86% of firms are experimenting with AI, primarily for client onboarding—a crucial touchpoint for asset managers, custodians, and broker-dealers. Meanwhile, 57% are piloting AI-driven solutions specifically for post-trade processes.
This surge in AI adoption is driven by the industry’s pressing need to enhance speed and automation. As markets gear up for the transition to a T+1 settlement cycle—where trades are settled just one business day post-transaction—the demand for efficient, automated processes has never been higher. “The move to T+1 is not just a technical adjustment; it’s a strategic imperative,” Cox explains. “AI offers the precision and scalability needed to meet these new demands.”
The Asian Advantage
Interestingly, Asia-Pacific emerges as a frontrunner in this digital revolution. The region’s enthusiastic embrace of crypto, combined with favorable regulations, sets the stage for rapid adoption of tokenized assets and AI innovations. This proactive stance could serve as a blueprint for other regions striving to keep pace with the technological advancements reshaping the financial services industry.
Yet, with opportunity comes uncertainty. The speed at which these technologies are evolving raises questions about the ability of existing infrastructure to keep up. As Cox notes, “The industry’s collective vision is converging on key themes—accelerated settlements, enhanced automation, and governance. However, the path forward is filled with challenges that require collaborative solutions.”
Looking Ahead: Challenges and Opportunities
As we gaze into the future, the road to widespread adoption of stablecoins and AI is fraught with both promise and peril. The potential to revolutionize post-trade processes is undeniable, but so too is the need for robust infrastructure and regulatory frameworks. The industry stands at a crossroads—will it seize the moment or stumble over the complexities of integration? This is particularly relevant as startup M0 raises $40M Series B, underscoring the increasing venture capital interest in stablecoin innovations.
In the coming years, the spotlight will be on how well market participants can adapt to these changes. The race to harness the full potential of tokenization and AI is on, with Asia-Pacific leading the charge. But as with any technological revolution, the true test lies not just in adoption, but in the ability to navigate the intricate web of challenges that accompany it. The transformation is underway—its success will depend on the industry’s agility and collaboration.
Source
This article is based on: Citi Says Stablecoins and AI Could Drive Post-Trade Shakeup
Further Reading
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
