TechFlow news, Citigroup believes that its investments in digital assets over the past few years "are now starting to pay off," though the technology remains in a growth phase. An increasing number of companies are exploring DLT and digital assets, with the proportion rising from 47% in 2022 to 74% in 2023.
A survey found that despite failures among crypto firms, interest in and participation with distributed ledger technology (DLT) and digital assets continues to grow. More and more companies are exploring this space.
Citigroup noted that billions of dollars in value are already being managed via DLT. The challenge lies not with the technology itself, but with the people and processes implementing it.
The survey also revealed that regulatory uncertainty could hinder future development, especially in North America and Europe. The digital currency sector, including central bank digital currencies (CBDCs), is growing rapidly. 87% of market participants consider the industry "viable" before 2026, up from 72% last year.
Overall, growth in the DLT space is outpacing that of the cryptocurrency sector. Around 87% of custodians are actively working on DLT and digital assets, while only 25% of asset owners have active projects.
Citigroup believes that DLT and digital assets require process changes and system reengineering, and companies must be prepared for significant investment in this area.
