Tokenization 2030: Citi Sees Wall Street Moving On-Chain

Citi Institute released its new GPS report last week titled Tokenization 2030: Wall Street On-Chain. After years of pilots and regulatory delays, the report argues that tokenization of financial assets is finally shifting from experiments to real operational use.

The current market for tokenized assets sits at about 17 billion dollars globally. Citi projects this could reach 5.5 trillion dollars by 2030 in its base case, with a lower scenario at 2.7 trillion and an upside at 8.2 trillion. The growth is expected to come mostly from public market securities like U.S. equities and Treasuries rather than private markets, which still face bigger structural hurdles.

Three main drivers pushing adoption

Three main drivers are pushing this forward. First, big market infrastructure players are embedding tokenization into their core systems. DTCC got clearance late last year for a tokenization service covering stocks, ETFs, and Treasuries, with a pilot starting toward the end of 2026. NYSE has plans for a tokenized platform by the end of this year that would support 24/7 trading and near-instant settlement. Nasdaq has also secured approval to issue, trade, and settle certain stocks and ETFs in tokenized form. These are not crypto-native outfits. They are the established rails of traditional finance.

Second, on-chain money is becoming available. Earlier tokenization efforts struggled because there was no reliable digital cash for settlement. Now stablecoins are growing fast, and major banks are building tokenized deposit systems. Citi’s earlier work on stablecoins forecasts 1.9 trillion dollars in stablecoin issuance by 2030. This provides the foundation for atomic delivery-versus-payment on chain.

Third, regulation is getting clearer in key places. The SEC has confirmed that putting a digital wrapper on a security does not change its regulatory treatment. Europe has MiCA in place along with its DLT pilot regime. The UK is running a digital securities sandbox, and places like Hong Kong and Singapore continue to move ahead with licensing and pilots. Progress is still uneven across regions, but the overall direction supports more institutional work.

A gradual shift with hybrid models

Citi stresses that this will be a gradual shift rather than a sudden replacement of existing systems. Hybrid setups where tokenized and legacy processes run side by side are likely to dominate for years. That period will probably bring added complexity and cost before the full efficiency gains show up. Interoperability between platforms and standards remains essential for scale.

The report highlights a few standout points. Public equities and liquid collateral like Treasuries and money market funds are positioned to lead adoption. Younger retail investors who already expect constant access are seen as one driver for tokenized equities. Major infrastructure moves by DTCC, NYSE, and Nasdaq could accelerate participation from traditional institutions starting this year and into 2027.

On the value side, tokenization opens new possibilities through programmability. Issuers could build self-executing features into securities. Collateral management and settlement become faster and more automated. At the same time, traditional fee pools tied to post-trade processing may face pressure while new revenue areas emerge around issuance, data, and on-chain services.

Institutions that can control both asset issuance and the settlement rails stand to benefit most. Citi calls these players “structural orchestrators.” They combine scale, client relationships, and the ability to integrate on-chain infrastructure. Newer entrants will push innovation, but established firms with balance sheet strength and regulatory comfort are well placed if they adapt.

Private markets move more slowly

Private markets get less emphasis in the near term. Tokenization can improve access and efficiency there, but the relationship-driven and illiquid nature of private credit and equity means adoption will likely stay modest through 2030. Real estate funds are projected to see some growth, though still limited compared with public assets.

The report is straightforward about past setbacks. Earlier waves stalled because of regulatory uncertainty, fragmented infrastructure, and the lack of on-chain settlement assets. Those constraints are easing now, but challenges like cross-chain interoperability and thin secondary market liquidity remain.

Overall the outlook is measured but constructive. Tokenization is presented as an evolution in market infrastructure rather than a complete overhaul. The path depends more on regulatory coordination, liquidity alignment, and managing the hybrid transition than on pure technology.

The full report is worth reading if you work in capital markets or digital assets. It pulls together perspectives from a wide range of participants including DTCC, Consensys, Aave, T. Rowe Price, and others. The core message is that the pieces are finally falling into place for meaningful scale by the end of the decade.

Source: Citi Institute GPS Report Tokenization 2030 – Wall Street On-Chain (June 2026). All projections and quotes are from the report unless otherwise noted.