Citigroup has released a bold forecast regarding the future of stablecoins, suggesting that their total supply could skyrocket to $3.7 trillion by 2030 under an optimistic scenario.
Even under its baseline estimate, the supply is expected to hit $1.6 trillion, reflecting strong confidence in the asset class.
The projection signals the accelerating role of stablecoins in global finance and underlines their emerging significance beyond just the crypto sector.
Stablecoin Market Surges Past $230 Billion in Early 2025
According to Citi’s report, the supply of stablecoins as of March 2025 has already surpassed $230 billion, marking a more than 30-fold increase compared to five years ago.
The rapid growth is attributed to a global uptick in digital payment adoption, improved cash management strategies.
Also promoting a strong preference for USD-backed assets, which currently make up around 90% of the stablecoin market.
The trend underscores increasing trust and utility in digital dollar-based assets.
Regulation Could Drive Demand for U.S. Treasuries
The report highlights that the introduction of a comprehensive regulatory framework in the U.S. could further accelerate stablecoin adoption.
If such regulation materializes, it may lead stablecoin issuers to become major holders of U.S. Treasury bonds.
They would not only boost demand for Treasuries but could also enhance the legitimacy and integration of stablecoins within traditional financial systems.
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Stablecoins Seen as a Key Tool in Global Finance
Despite current legal and compliance hurdles, Citigroup remains bullish on the long-term role of stablecoins, particularly in cross-border payments and institutional asset allocation.
The bank believes stablecoins could become essential instruments for streamlining international transactions and optimizing portfolios for financial institutions.
As digital economies evolve, stablecoins appear poised to become core components of modern financial infrastructure.
Citigroup’s Growing Involvement in the Crypto Sector
In addition to its bullish stance on stablecoins, Citigroup has been actively expanding its footprint in the broader cryptocurrency sector.
The bank has partnered with State Street, the world’s largest custodian bank, to launch crypto custody services.
The move is expected to serve the growing demand for secure digital asset storage, especially among institutional investors.
The recent rescinding of the SEC’s SAB 121 rule, which previously limited U.S. banks from offering crypto custody services, has paved the way for these offerings to expand.
Furthermore, Citigroup’s involvement in the crypto sector extends to the rise of digital assets like Ripple’s XRP, which recently surpassed Citigroup’s market cap, reaching $139.04 billion, demonstrating the increasing competition and adoption of cryptocurrencies.
The development illustrates how Citigroup is positioning itself to be at the forefront of both the stablecoin and broader cryptocurrency market, further solidifying its role in the future of digital finance.
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