Citi estimates tokenized securities market at $4 trillion by 2030

By 2030, the market capitalization of security tokens will reach $4 trillion, and the volume CBDC in circulation — $5 trillion, of which half will be linked to DLT. Such findings are contained in Citi’s study, writes The Block.

Citi GPS editor Kathleen Boyle described the tokenisation of financial instruments and real-world assets as the ‘killer app’ among use cases — what the blockchain needs for a breakthrough.

According to the expert, the potential has not yet reached mass adoption. Blockchain is a server-side infrastructure technology with no noticeable consumer interface; its innovations are less visible.

According to Boyle, the industry has approached a tipping point, after which the potential of DLT will unfold.

Implementation will occur when the blockchain audience exceeds one billion users, who will not even realise they are using this technology. The situation will become possible thanks to the launch of CBDC, tokenised assets in games and DLT-based payments in social networks, — she explained.

Mass adoption will require ancillary tools — decentralised identity solutions, zero-knowledge proofs,oracles and secure bridges. Legal aspects that ensure popularisation and scalability without hindering innovation are also important, the specialist noted.

Six to eight years remain until mass adoption. Momentum has shifted for the better — governments, large institutions and corporations have moved from studying the advantages of tokenisation to trials and proofs of concept, Boyle explained.

Earlier, BlackRock CEO Larry Fink stated the potential of the technology to improve efficiency in capital markets.

Moody’snoted the potential for cost savings and greater transparency in their use by municipalities issuing bonds using blockchain.