Citigroup Forecasts Tokenized Securities Market Will Hit $5.5 Trillion

(MENAFN- Yolo Wire) American bank Citigroup (NYSE: $C) is forecasting that the market for tokenized securities will reach $5.5 trillion U.S. by 2030.

Analysts at Citigroup say that the global market for digital investments currently sits at $17 billion U.S. but add that the market is poised to grow exponentially in the next few years.

Putting real-world assets such as stocks, bonds, and exchange-traded funds (ETFs) onchain, a process called "tokenization," is moving out of the testing phase and into everyday business, notes the bank in a new report.

Citigroup expects the market for tokenized securities to increase to $5.5 trillion U.S. by 2030 in its base case forecast.

The bank offers a range from $2.7 trillion U.S. to $8.2 trillion U.S. in its outlook, depending on how robust adoption and uptake are in the next few years.

Citigroup notes that the companies running the world's stock markets are supportive of tokenization and are now building the technology directly into their trading systems.

Additionally, government rules are getting clearer on digital assets, with a key piece of U.S. legislation moving forward to a full U.S. Senate vote.

The Citigroup report notes that the growth they forecast will happen in mainstream public markets, such as U.S. stocks and government bonds, rather than in private markets.

Citigroup assumes that 10% of the U.S. Treasury bill market and 3% of the U.S. public stock market will be tokenized by 2030.

If just 10% of investors switch to new digital trading platforms, it would create $2.6 trillion U.S. in demand for digital stocks, notes the bank's analysts.

C stock has risen 66% over the last 12 months to trade at $125.90 U.S. a share.

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