Wall Street's biggest bet on blockchain is no longer crypto trading — it is putting $5.5 trillion of stocks and bonds onchain by 2030, with Ethereum as the primary settlement layer.
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Citi forecasts $5.5 trillion tokenized securities market by 2030
Citigroup projects the market for tokenized securities will grow from $17 billion to $5.5 trillion by 2030, a 323-fold expansion that would make real-world asset tokenization one of the fastest-growing segments in digital assets.
"Tokenization is moving out of the testing phase and into everyday business as exchanges build the technology directly into their trading systems," Citigroup analysts wrote in a research report published Monday, June 1.
The bank's base case assumes 10 percent of the U.S. Treasury bill market and 3 percent of the U.S. public stock market will be tokenized by decade's end, with a range of $2.7 trillion to $8.2 trillion depending on adoption velocity. If just 10 percent of retail investors migrate to digital trading platforms, demand for tokenized equities alone could reach $2.6 trillion, the report said.
The forecast provides institutional validation for Ethereum as the primary settlement layer for tokenized assets, where BlackRock's BUIDL fund already operates. The timing coincides with Ethereum funding rates hitting their highest level since August 2025, signaling that leveraged traders are positioning for a rally in the asset most directly tied to the tokenization trend.
Stablecoins Could Drive $1 Trillion in Treasury Demand
Citigroup also projected the stablecoin market could reach $1.9 trillion by 2030, with issuers holding U.S. Treasury bills as reserves. That expansion would generate roughly $1 trillion in new demand for government bonds, creating a structural link between digital asset markets and sovereign debt markets.
"Stablecoins will play an important role in the development of tokenized marketplaces," the report said, noting that the companies running the world's stock exchanges are now building tokenization technology directly into their trading infrastructure.
Ethereum Funding Rate Hits 9-Month High
The tokenization narrative is converging with a buildup in Ethereum derivatives markets. ETH funding rates — the periodic payments between long and short perpetual futures traders — reached their highest level since August 2025, according to Coinglass data. Elevated funding rates indicate strong demand for leveraged long exposure, though they also carry the risk of cascading liquidations if the price reverses.
The funding rate spike suggests traders are betting that Ethereum, as the dominant smart contract platform for tokenized assets, will capture a disproportionate share of the capital flows that Citigroup's forecast implies. BlackRock's BUIDL fund, which tokenizes short-term U.S. Treasuries on Ethereum, has already demonstrated institutional demand for onchain yield products.
Binance Joins the Tokenization Race
The institutional push extends beyond traditional banks. Binance, the world's largest crypto exchange by volume, is reportedly adding more than 7,000 U.S. stocks and exchange-traded funds to its platform and plans to launch tokenized shares, according to Fortune. Binance Co-CEO Richard Teng said the move aims to make U.S. equities accessible to international investors who face high costs and barriers to entry in traditional markets.
The exchange plans to offer commission-free stock trading to non-U.S. users, including fractional-share purchases starting at $5. Users will be able to buy stocks using stablecoins such as USD Coin and Tether's USDT, as well as select cryptocurrencies including Binance Coin.
The convergence of a major bank forecast, rising Ethereum leverage, and exchange-level tokenization infrastructure points to a structural shift in how traditional assets are issued, settled, and traded. If Citigroup's base case materializes, tokenized securities would represent roughly 10 percent of the $55 trillion U.S. fixed-income market and a meaningful slice of the $50 trillion U.S. equity market by 2030 — a transformation that would reshape the economics of clearing, settlement, and custody across Wall Street.
This article is for informational purposes only and does not constitute investment advice.
[1] Citigroup Predicts $5.5T Tokenization Boom as Ethereum Funding Rate Reaches 9-Month High[2] Citigroup Forecasts Tokenized Securities Market Will Hit $5.5 Trillion[3] Citi Predicts Tokenized Securities Could Hit $5.5 Trillion by 2030[4] Citi says tokenized assets could reach $5.5T by 2030[5] Binance Is Reportedly The Latest To Join The Race Toward Tokenized Market – Citi Predicts $5.5T Boom By 2030
