Stablecoins can expand to $1.6T by 2030, says Citigroup
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Citigroup envisions a key role for stablecoins, with the potential for a total supply of $1.6T by 2030. A new paper by Citi Institute tracks the positive development scenario for the blockchain space by the end of the decade. Citi Institute predicts the total supply of stablecoins will increase as high as $1.6T by 2030 in the base case scenario. In a more bullish development, the market may see up to $3.7T in stablecoins. Issuers may become some of the biggest holders of US Treasuries, a convenient and liquid collateral. Stablecoin issuers may become the biggest buyers for US Treasuries, due to the dollarization of the crypto market. | Source: Citigroup The research also suggests blockchain technologies and stablecoins may have a ‘ChatGPT’ moment by the end of 2025, as improved regulations may lead to wider adoption in the financial sector. Stablecoins have already seen regional regulation, while the USA passed a new stablecoin bill to differentiate between different types of asset-backed tokens. Citigroup believes the crypto market will remain dollarized, with up to 90% of issued stablecoins based on the US dollar. Other countries may start experimenting with centralized CBDCs, denominated in other currencies. The dollarization will lead to demand for US Treasuries, which are already backing USDT and other stablecoins. Even in 2024, Tether ranked among the top 7 holders of US Treasuries, competing with other large corporate and state entities. Citi Institute predicts demand for $1T in US Treasuries by 2030 in the base case scenario. The report bases the figure on estimated demand in the case of favorable regulation and transparent US-based stablecoin issuers. Stablecoins still pose a contagion risk Citi Research counted 1,900 events when stablecoins deviated from their $1 value in 2025. Even asset-backed tokens can fluctuate, while algorithmic coins can have even more…
Filed under: News - @ April 24, 2025 8:24 pm