Citigroup's 2025 Securities Services Evolution Report Spotlights DLT, Tokenization, and Stablecoins as Catalysts for Post-Trade Revolution
September 8, 2025
Citigroup's Investor Services division has launched its fifth annual "Securities Services Evolution 2025" whitepaper [1], delivering a forward-looking analysis of the post-trade securities landscape. Based on a global survey of 537 industry leaders and interviews with executives from over a dozen market infrastructures, the report underscores how Distributed Ledger Technology (DLT), tokenization, stablecoins, and blockchain innovations are poised to reshape the industry. These technologies are transitioning from experimental phases to mainstream applications, promising transformative efficiencies in speed, cost, and resilience.
"This year’s insights reveal a tipping point for digitalized markets," stated Chris Cox, Head of Investor Services at Citi, in the foreword. "After years of groundwork, DLT and blockchain-based solutions like tokenization and stablecoins are delivering practical benefits, with digital asset and tokenized securities projected to hit 10% of global totals by 2030. [2]"
Digital Assets Take Center Stage: A Decade of Progress Culminates in 2025
Citigroup identifies a sharp pivot toward DLT and blockchain, with 85% of respondents aligning on five key post-trade priorities, including the adoption of digital assets as a top driver. Over the past decade, the industry has evolved from broad experimentation to targeted, live use cases. Tokenized collateral, stablecoins, and tokenized funds now dominate discussions, signaling a shift away from disruption toward integration with traditional infrastructures.
"Far from triggering disintermediation, firms are leveraging traditional market infrastructures and custodians to digitize existing activities," the report explains. This pragmatic approach is unlocking immediate benefits, particularly in balance sheet management and operational efficiency.
Tokenization: Unlocking Liquidity in Collateral and Funds
At the heart of the Citigroup's analysis is tokenization's role in revolutionizing asset mobility. Tokenized collateral emerges as a game-changer, enabling automated, intraday capital management through platforms like Broadridge and HQLAx. By harnessing blockchain's immediacy, institutions can shift from manual overnight funding to real-time repos, reducing funding costs and enhancing liquidity ratios.
Tokenized funds rank as the second-fastest growing asset class, with over $6 billion in assets under management (AUM) accumulated in just over a year by leaders like BlackRock's BUIDL, UBS in Singapore [4], and China AMC in Hong Kong [3]. Blockchain facilitates instant subscriptions and redemptions, allowing fund units to be pledged or sold as collateral—eliminating days of idle capital and addressing long-standing inefficiencies in mutual fund processing.
Private markets are also ripe for transformation, with projections of $202 billion in digitized securities by 2030, representing 13.9% of volumes. The report highlights how tokenization is mobilizing fixed income and equities, fostering new liquidity sources without overhauling existing systems.
Stablecoins: The Bridge to Digital Money and Real-Time Settlements
Stablecoins are positioned as the "main vehicles for digital money in the near-term," offering a regulated balance between automation and compliance. Bank-issued stablecoins and tokenized money market funds are enabling real-time mobility, supporting use cases in collateral efficiency, fund tokenization, and private securities.
The report notes explosive growth, with non-cryptocurrency digital asset issuance surpassing $25 billion by late 2024, and tokenized funds reaching $2 billion in AUM. In regions like Asia-Pacific, stablecoins are converging with traditional securities, with 15% of respondents expecting cryptocurrencies to fund exchange-traded activities by 2030. Regulatory advancements, such as Hong Kong's Stablecoins Ordinance and Singapore's Project Guardian, are accelerating institutional adoption.
Financial Market Infrastructures (FMIs) are central to this evolution, with 71% of Latin American respondents and similar majorities elsewhere expecting traditional FMIs to underpin digital networks. Initiatives like the ECB's Eurosystem DLT trials—which settled €1.59 billion in real cash—and the DTCC's "Great Collateral Experiment" demonstrate blockchain's potential [6] for tokenized real-time collateral management.
DeFi and TradFi Convergence: Blockchain's Broader Ecosystem
A dedicated viewpoint section explores the convergence of Decentralized Finance (DeFi) and Traditional Finance (TradFi). With DeFi's total value locked exceeding $200 billion and tokenized real-world assets (RWAs) surpassing $10 billion in 2025, the report predicts a hybrid future. Blockchain will enable 24/7 mobility, resolving T+0 concerns and enabling weekend repos.
TradFi institutions will serve as trusted gateways, providing standardized access to blockchain networks, while DeFi delivers efficiency through smart contracts. Technologies like Zero-Knowledge Proofs (ZKPs) and interoperability platforms such as Chainlink are bridging public and private chains, mitigating risks and enabling secure data sharing.
However, challenges persist: regulatory fragmentation, network risks, and the need for new competencies in KYC/AML. The report warns that without collaboration, complexity could hinder scale.
Broader Context: T+1 and GenAI Complement Blockchain Momentum
While DLT and tokenization dominate, the report ties them to broader trends. Settlement acceleration (T+1), settling securities trades within one business day, workloads are at historic highs, with 76% of firms active, creating synergies with blockchain's real-time capabilities. GenAI, piloted by 86% of respondents, is enhancing onboarding and reconciliations, potentially integrating with blockchain for smarter asset servicing.
Regionally, North America's regulatory tailwinds are accelerating tokenization; Europe's ECB trials and Savings & Investments Union (SIU) are fostering DLT adoption [5]; Latin America's "Piloto Drex" and nuam initiatives emphasize stablecoins; and Asia-Pacific leads in tokenized funds via platforms like Fundnode.
Forward-Looking: Turning Blockchain Insights into Action
Citi frames the report as a blueprint for partnerships, leveraging its global platform to implement DLT solutions. "We are excited to work with you to deliver more business value than ever," Cox concluded.