Wall Street Tokenization Push Could Create $5.5T Market by 2030

TLDR

• Citi said tokenized assets could grow from $17 billion today to $5.5 trillion by 2030.
• DTCC, Nasdaq, and Intercontinental Exchange are building tokenization systems for public market securities.
• Citi expects stablecoins to reach $1.9 trillion and support faster settlement for tokenized assets.
• The report said tokenized Treasury bills and public stocks may lead to adoption before private markets.
• Citi said large banks and investment firms may gain an advantage by controlling assets and payment rails.

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Tokenization has moved closer to Wall Street’s core systems as Citi projected trillions of dollars in onchain assets by 2030.

Citi said in its Tokenization 2030: Wall Street On-Chain report that tokenized assets stand at about $17 billion today. The bank’s base case puts the market at $5.5 trillion by 2030, while its low and high cases range from $2.7 trillion to $8.2 trillion.

Stablecoins May Power Wall Street Tokenization Boom

According to Citi, the next stage of tokenization will come from public markets rather than private assets. The report says market infrastructure groups are adding blockchain systems to pipes that support securities trading.

DTCC plans limited production trades of tokenized securities in July, Citi noted, before a launch scheduled for October. Nasdaq is preparing a framework for blockchain-based shares as early as 2027. Intercontinental Exchange has plans for tokenized equities, according to the report. Citi said DTCC and the New York Stock Exchange owner bring tokenization closer to capital markets.

The report said tokenized assets need reliable digital cash before instant settlement can work at scale. Citi expects stablecoins to reach $1.9 trillion by 2030, with bank deposits helping securities and cash settle in one transaction.

Citi said stablecoin growth could create $1 trillion of extra demand for U.S. government bonds. The bank tied that estimate to issuer reserves, since many stablecoin firms back tokens with Treasury bills.

Citi Sees Public Assets Driving Tokenization

In Washington, Citi pointed to clearer digital asset rules as another reason tokenization may grow faster. The report cited the Clarity Act’s progress after the Senate Banking Committee advanced it in a 15-9 bipartisan vote on May 14.

Citi said public assets are easier to tokenize than private credit or private equity, which remain harder to trade. The bank expects private credit and private equity tokenization to reach $100 billion each by 2030.

Citi expects 10% of U.S. Treasury bills and 3% of U.S. public equities to become tokenized by 2030. The report said 10% retail adoption of digital trading platforms could create $2.6 trillion of demand for tokenized stocks.

Citi said old and new systems will run together for years, like toll roads that kept cash lanes while adding E-ZPass. Citi said the largest advantage may go to “structural orchestrators,” or firms controlling assets and payment rails.

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