Citi's $5.5 Trillion Forecast Shows How Tokenized Collateral and U.S. Equities Could Carry the Market to 2030

Citigroup has released a comprehensive report projecting that the total value of tokenized assets could reach $5.5 trillion by 2030, with a potential bull case scenario of $8.2 trillion. The bank’s forecast is built on penetration assumptions across a $392 trillion addressable market, notably expecting 3% of U.S. equities and 10% of Treasury bills to move onchain. While current tokenized financial assets remain at approximately $17 billion, Citi emphasizes that the industry is transitioning from pilot programs to core financial infrastructure. A significant portion of this growth is expected to be driven by tokenized collateral, which allows for 24/7 settlement and improved capital efficiency for institutional managers. Citi highlights that tokenization does not alter asset economics but fundamentally changes the speed and cost of movement, particularly for cross-border margin calls. The report identifies key drivers for this adoption, including infrastructure initiatives from the DTCC, the rise of regulated onchain money, and evolving regulatory frameworks. However, the bank warns of a messy hybrid transition period where traditional and tokenized rails will operate concurrently for 12 to 24 months. Ultimately, Citi argues that firms must integrate tokenization into core collateral management workflows rather than treating it as a peripheral experiment.