Citi’s latest Securities Services Evolution whitepaper reveals a sharp shift in the use of digital money as distributed ledger technology (DLT) and digital assets become more commercialized. By 2026, 65% of respondents plan to use non-CBDC options like stablecoins, tokenized deposits, and digital payment systems for digital securities settlements, compared to just 15% favoring CBDCs. This marks a significant change from last year when 52% preferred CBDCs.
The whitepaper, Citi’s largest to date, surveyed nearly 500 market participants, offering insights from both buy- and sell-side institutions, alongside input from 14 financial market infrastructures (FMIs). It provides a regional analysis across Asia Pacific, Europe, North America, and Latin America.
Okan Pekin, Citi’s Head of Securities Services, highlighted the ongoing focus on reducing settlement cycles and the growing impact of technologies like DLT and tokenization, which are reshaping the securities landscape. Key findings from the whitepaper include:
- Regional digital adoption: Asia Pacific and Europe lead in DLT and digital asset initiatives, with 48% and 46% of respondents respectively pursuing projects.
- Tokenization: 62% of sell-side respondents are focused on tokenizing various assets, while only 8% are prioritizing native digital security issuance.
- Private vs. public networks: 64% of sell-side respondents favor private networks for asset tokenization, while buy-side participants are more inclined to use public blockchains.
On settlements:
- T+1 settlement impact: 44% of respondents reported significant effects from T+1, up from 28% in 2023. Europe saw the highest impact at 60%.
- Securities lending: 50% of respondents cited a major impact on securities lending, up from 33% last year.
- Future of settlements: 40% expect real-time, atomic settlements within the next decade, with Asia being the most optimistic.
Amit Agarwal, Citi’s Head of Custody, noted the increasing convergence of traditional and digital assets, emphasizing the need for modern platforms and real-time data. He expects continued investment in automation, cloud infrastructure, and DLT-integrated solutions.
