Citigroup predicts that by 2030, the market capitalization of stablecoins may exceed 1.6 trillion dollars.

Author: cryptoslate

Compiled by: Blockchain Knight

The stablecoin sector is entering a period of accelerated application, which can be compared to the early growth of generative artificial intelligence tools like ChatGPT. It is expected that by 2030, its market value may exceed $1.6 trillion.

According to a new report released by Citigroup's Global Insights and Solutions division on April 24, the application scenarios of stablecoins are now expanding from the realm of crypto assets to broader financial and public sector areas.

The supporting factors for this transition include improved regulatory clarity, increased institutional interest, and global market demand for dollar-denominated digital assets.

The report draws a comparison between the early adoption phase of ChatGPT and the current growth phase of stablecoins, suggesting that 2025 will be a turning point for the further integration of stablecoins into the global economic system.

Under Citigroup's optimistic forecast scenario, by 2030, the total market value of the stablecoin market could exceed $3.7 trillion. Currently, the stablecoin market has surpassed $230 billion, growing nearly 30 times over the past five years.

Institutional Demand and Macroeconomic Drivers

The Citibank report points out that progress in regulation, especially in the United States and Europe, is a key factor driving the expansion of stablecoins beyond their original roles in crypto asset trading and DeFi.

At the beginning of 2025, the United States introduced new legislation aimed at establishing a legal framework for the issuance and reserves of stablecoins. Meanwhile, the EU's Markets in Crypto-Assets Regulation (MiCA) also set standards across the entire EU.

This positive progress at the regulatory level coincides with the demand in emerging markets. In emerging markets, access to US dollars is restricted, and financial institutions are also exploring the use of stablecoin infrastructure for payments, settlements, and liquidity management.

The report indicates that banks and payment providers are beginning to integrate stablecoins into the existing financial system, breaking the previous limitation of stablecoins being confined to native applications of crypto assets. Citibank specifically predicts that the demand for stablecoins will create new purchasing demand for U.S. Treasury bonds.

By 2030, the amount of U.S. Treasuries held by stablecoin issuers using secure and highly liquid assets as reserves may exceed that of any existing foreign jurisdiction. In Citibank's base case scenario, this would add more than $1 trillion in demand to the U.S. Treasury market.

Application scenarios extend beyond the category of Crypto assets.

Although trading in crypto assets remains the largest application scenario for stablecoins, accounting for about 95% of the current trading volume of stablecoins, Citibank predicts that the use of stablecoins in areas such as B2B cross-border payments, consumer remittances, and institutional capital market activities will also see growth.

Emerging markets such as Argentina, Nigeria, and Turkey are also driving the adoption of stablecoins in the retail sector, as stablecoins can serve as a tool to hedge against inflation and currency fluctuations. At the same time, remittance channels are gradually shifting from traditional methods to stablecoin-based remittance methods due to lower costs and faster settlement speeds.

At the institutional level, large asset management companies and fintech companies are piloting stablecoin-based fund settlement, fund operation, and liquidity provision services, reflecting their confidence in the stablecoin infrastructure and regulatory environment.

Citibank compared the potential development trajectory of stablecoins to the bank card payment industry, believing that although a few dominant issuers may emerge, national participants and public-private partnership models are also expected to proliferate.

This may be similar to the rise of regional card networks in countries like Brazil and India, where local regulations support domestic financial sovereignty. The report emphasizes that trust, reserve transparency, and user experience are key factors determining which stablecoins can achieve mainstream penetration.

The report also pointed out that the long-awaited regulatory clarity has removed one of the biggest obstacles for the industry, allowing both existing participants and new entrants to build services on a more predictable legal basis.