NEW YORK, January 20, 2026 — Blockchain technology could add a significant boost to global economic output by streamlining payments and reducing friction, according to a new report from Citizens. The bank estimates that wider adoption of blockchain could accelerate global GDP by eliminating what they term a “friction tax” in financial processes.
Blockchain’s Potential to Unlock Economic Growth
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Analysts believe blockchain adoption can drive economic expansion through faster capital flow and a more innovative investment landscape.
- Blockchain could speed up capital velocity by enabling around-the-clock markets and near-instant settlement.
- Tokenization can broaden the range of investable assets, including those currently illiquid.
- The technology aligns with the demands of an increasingly digital and AI-driven economy.
- Major financial institutions, like the New York Stock Exchange, are actively integrating blockchain into their core systems.
“We believe blockchain adoption can support economic expansion driven by faster velocity and recirculation of capital; a larger and more innovative investable universe; and infrastructure that better matches the demands of an increasingly digital, AI-enabled world,” said analysts led by Devin Ryan in the Tuesday report.
What is tokenization? Tokenization is the process of converting real-world assets into blockchain-based tokens, making them easier to trade and finance.
The Rise of On-Chain Infrastructure
The report highlights a growing trend of established financial institutions embracing blockchain technology. The New York Stock Exchange (NYSE) is planning to launch a platform for tokenized securities, which would allow for 24/7 trading of U.S. stocks and exchange-traded funds (ETFs) with near-instant settlement, pending regulatory approval. This move, the analysts say, signals a strategic shift by traditional market operators to integrate blockchain to capitalize on new opportunities and ward off potential disruption.
Faster capital velocity is expected to be the first noticeable economic impact of blockchain. Around-the-clock markets and near–T+0 settlement – meaning transactions settle almost immediately – can reduce the amount of collateral locked up and minimize counterparty risk. This, in turn, frees up balance sheets and allows the same capital to be used for more economic activity.
Expanding the Investable Universe
Over time, tokenization is expected to significantly expand the range of assets available for investment. It can make it more cost-effective to issue, trade, and finance assets that are currently difficult to deal with due to their illiquidity or operational complexity. This includes traditional securities, as well as new asset classes linked to the digital economy, and more efficient on-chain collateral for lending.
As automation increases machine-initiated transactions, the bank argues that blockchain’s always-on, programmable nature is well-suited to handle the growing demand for real-time settlement, authentication, and auditability at scale. This is particularly relevant in an economy increasingly driven by artificial intelligence.
The analysts suggest that blockchain technology is a natural fit for an increasingly digital and AI-driven economy, offering the infrastructure needed to support the demands of a rapidly evolving financial landscape.
