According to a recent white paper by US multinational investment bank Citi, the widespread adoption of distributed ledger technology (DLT) is now growing rapidly among financial market infrastructures and global market participants.

According to the survey conducted, approximately 88% disclosed to Citi that their organizations are not only actively participating in digital assets or DLT, but also exploring it. Another percentage of around 92%, such tokenization is advantageous for market liquidity and the variety of tradable assets.

Okan Pekin, global head of securities services at Citi, stated:

“We are seeing a greater sense of momentum and purpose across industry developments, in particular the determination to move to a T+1 settlement cycle. Delivering these changes will be no small feat, but in due time will offer the prospect of very substantial cost savings and efficiencies.”

The survey also found that market infrastructure based on distributed ledger technology would likely reduce post-trade refinement costs by 10% to 30%. Furthermore, 79% of those surveyed stated that an atomic agreement could be successfully reached in less than 10 years.

In particular, Citi’s second Evolution of Securities Services white paper contains relative and measurable data from 12 financial markets infrastructures and nearly 300 market participants of broker-dealers, banks, custodians, institutional investors and asset managers.

In addition to the white paper, Citi has been releasing its projections on the industry. In August, the investment bank reported that the merger would make Ethereum (ETH) a deflationary asset, and as a result, Ethereal would become a “profitable asset”.

Citi noted in the report,

“Because Ethereum will generate yield and deflation, it is less likely to be the blockchain with the highest yield. Given its “enhanced value storage properties, it is more likely to be where an increasing amount of the total value locked is secured and traded.”

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