Citigroup predicts that the tokenization of real-world assets will reach a market value of $5.5 trillion by 2030, according to a new report, "Tokenization 2030: Wall Street On-Chain." The bank expects the sector to grow from its current valuation of $17 billion, with estimates ranging as high as $8.2 trillion depending on the speed of industry adoption.
Tokenization involves recording traditional investments like stocks and government bonds on a blockchain. Moving these assets on-chain allows for instant settlement, a shift that Citi suggests represents a major turning point for the global financial system.
"You’re seeing the full weight of American financial power and the global reserve currency moving on-chain at scale," the Citi report states. "When DTCC and the NYSE embed tokenization into capital markets, this marks a tipping point."
Drivers of Institutional Adoption
Three primary factors are fueling this transition. First, major market infrastructures are integrating blockchain directly into their core trading systems. The Depository Trust & Clearing Corporation (DTCC) plans to begin limited production trades of tokenized securities this July, while Nasdaq is developing a framework for blockchain-based share issuance expected by 2027. The Intercontinental Exchange, owner of the New York Stock Exchange, is also pursuing similar initiatives.
Second, the expansion of stablecoins is providing the necessary liquidity for instantaneous trades. Citi projects that the stablecoin market will reach $1.9 trillion by 2030. Because issuers often back these digital tokens with U.S. government debt, the bank anticipates this growth will create $1 trillion in new demand for Treasury bills.
Finally, the regulatory landscape is becoming more defined. A bipartisan group on the U.S. Senate Banking Committee recently advanced the Clarity Act, signaling progress toward federal oversight for digital assets.
Citi notes that the most significant growth will occur in mainstream public markets rather than niche private assets. The bank estimates that 10% of the U.S. Treasury bill market and 3% of the public stock market will be tokenized within the next six years.
This transition will not occur overnight. The report compares the process to the adoption of electronic toll systems like E-ZPass, noting that legacy and digital financial systems will likely run in parallel for years. This environment will provide a competitive advantage to "structural orchestrators," or large financial institutions that control both the underlying assets and the payment rails used to settle them.
