<b>Tokenized Securities Forecast: Citi Sees $5.5 Trillion Market Value by 2030</b>

Citi's forecast marks a significant milestone in the development of tokenized securities, which have been gaining traction in recent years. The bank's model suggests that this growth will be driven by several key factors, including the increasing demand for digital stocks and stablecoin settlement.

The use of blockchain technology is becoming more widespread in traditional finance, with banks and asset managers using it to improve settlement times and expand trading hours. Citi's forecast assumes that 10% of the US Treasury bill market will be tokenized by 2030, while 3% of the US public stock market will also move onto blockchain.

Stablecoins are expected to play a crucial role in this process, with their growth creating new demand for US Treasuries and linking the rise of digital dollars directly to the tokenization story. Digital stocks, on the other hand, are seen as a way to improve trading efficiency and make it easier for investors to access markets.

Citi's forecast is not without its challenges, however. The bank notes that strong compliance, custody, and market structure are essential for the success of tokenized securities, which must link to legal ownership records rather than simply tracking the price of traditional assets.