The post-trade ecosystem—encompassing custody, settlement, and asset servicing—is poised for an overhaul. Citi‘s report aims to chart this ongoing transformation.
Prepared by a team of professionals including Ronit Ghose, Global Head of Future of Finance at Citi Institute, and Amit Agarwal, Global Head of Custody for Investor Services, the document draws on surveys, industry interviews, and real-world data to argue that technological disruption, regulatory pressures, and geopolitical shifts are driving the industry toward a 24×7, real-time model.
At its core, the report posits that post-trade infrastructure must “rebuild the pipes of global finance” to handle instantaneous transactions in an ecosystem of digital assets and AI.
Traditional batch-processing systems, relics of a slower world, are giving way to always-on platforms capable of real-time settlement and custody.
A key finding from Citi’s 2025 survey underscores this urgency: 41% of respondents identified accelerated settlement cycles as the biggest driver of change, up sharply from prior years.
With 40% of global securities turnover already operating on T+1 or shorter cycles—thanks to mandates in markets like the U.S. and Europe—the pressure is mounting.
“The future is not about faster; it’s about instant,” the report states, highlighting how delays in settlement can cascade into systemic risks, as seen in past flash crashes.
Digital assets emerge as a linchpin in this reimagining.
Tokenization of real-world assets (RWAs) and stablecoins are not fringe experiments but institutional imperatives, promising to slash post-trade costs by up to 50% through atomic settlement on distributed ledger technology (DLT).
Survey data reveals a stark evolution: 82% of 2025 respondents believe DLT and digital assets will fundamentally alter market structures, compared to just 53% in 2023.
Nearly 90% cited benefits like enhanced liquidity and reduced counterparty risk.
Examples abound, from BlackRock’s tokenized money market funds to JPMorgan’s Onyx platform, which processed over $1 trillion in transactions by mid-2025.
Yet challenges persist: interoperability gaps and regulatory silos, particularly in fragmented jurisdictions like the EU’s MiCA framework versus the U.S.’s evolving SEC guidelines.
Citi recommends custodians forge partnerships with fintechs to bridge these divides, creating hybrid models that blend traditional securities with blockchain-native instruments.
Artificial intelligence and data analytics further amplify this shift, offering tools to rethink efficiency and client experiences.
While enterprise-wide generative AI adoption stands at 53% with live projects, post-trade lags at a mere 24%, hampered by legacy system fragmentation and compliance hurdles.
The report envisions AI as a “force multiplier,” enabling predictive analytics for settlement fails, automated credit extensions, and hyper-personalized client dashboards.
For instance, AI could forecast geopolitical disruptions’ impact on asset flows, drawing on vast datasets from Citi’s global network.
“Data is the new oil, but AI is the refinery,” notes one analyst, emphasizing how machine learning can transform siloed information into actionable insights, boosting operational resilience.
Client expectations are the report’s North Star, evolving toward consolidated, tech-forward relationships.
Investors, from sovereign wealth funds to asset managers, demand global custodians that deliver scale, local expertise, and seamless digital integration.
Consolidation is rampant: firms are pruning provider lists to fewer than five for better pricing and latency reduction.
In an “always-on” world, clients expect 24×7 access to real-time valuations and reporting, unburdened by time zones or holidays.
Citi’s analysis shows a preference for mega-custodians like itself, which safeguard $28 trillion in assets, over niche players lacking cross-border heft.
Geopolitics adds a layer of peril and opportunity.
The report dissects how events like Russia’s 2022 invasion—still echoing in 2025 with Euroclear immobilizing €194 billion in sanctioned assets—have rewritten the risk playbook.
Data localization laws in China and India are spawning parallel infrastructures, fragmenting global flows and heightening custody risks.
Citi urges custodians to bolster asset safety through diversified collateral pools and AI-monitored sanctions screening, while navigating U.S.-China tensions that could bifurcate markets.
In recommendations, the report calls for more investments: APIs for frictionless connectivity, standardized protocols for token interoperability, and AI ethics frameworks to build trust.
Platforms and partnerships—think collaborations with Swift for ISO 20022 or with blockchain consortia like Canton Network—will define “Post-Trade 2.0.”
As Ghose notes,
“The custodians that thrive will be those who turn disruption into differentiation.”
Ultimately, Citi’s blueprint is optimistic yet pragmatic: the post-trade future is instantaneous, inclusive, and intelligent.
By embracing these changes, the industry can mitigate risks, unlock trillions in trapped liquidity, and serve a borderless economy.