- Citi forecasts stablecoin market reaching $4 trillion by 2030.
- Driven by e-commerce, USD-backed digital assets demand.
- Potential higher volumes from bank-issued tokens.
Citi projects the stablecoin market could reach $4 trillion by 2030 due to widespread digital asset adoption in crypto-native sectors and growing international demand.
The anticipated growth underscores stablecoins’ role in global finance, with projected $4 trillion expansion indicating a shift towards blockchain and digital transactions.
Citi’s latest report projects a dramatic increase in the stablecoin market, reaching $4 trillion by 2030. The growth is expected to be fueled by increasing adoption in crypto-native industries and global demand for stable, USD-backed digital currencies.
The research was led by experts Ronit Ghose and Ryan Rugg at Citi Institute, with input from industry leaders such as Anna Strebl, CEO of Confirmo. The report outlines several scenarios, including a potential boom in stablecoin usage among businesses.
The projected market expansion of stablecoins is likely to impact various sectors, including retail and international commerce. High volumes in business-to-business stablecoin payments suggest a shift towards stablecoins as a mainstay in global settlements.
Financial implications include a possible increase in transaction volumes, with bank-issued tokens playing a significant role. Citi analysts noted this could transform how institutions interact with cryptocurrency markets and enhance liquidity through on-chain flows.
Regulatory advancements may encourage further adoption. Investments in stablecoin technologies by traditional banks and fintech companies could rise, according to the analysts. Federal regulations might play a crucial part in shaping market dynamics and creating new opportunities.
Exploring Stablecoins: A Vision for 2030 discusses how stablecoins’ growth parallels past regulatory shifts that prompted rapid adoption. Historical trends, such as regulatory endorsements in 2020, indicate a strong reaction in market liquidity and utilization, suggesting robust possible outcomes for investment and innovation.
Ronit Ghose, Analyst, Citi Institute GPS, – “Stablecoins are a catalyst for blockchain’s ChatGPT moment in institutional adoption.”
