Citigroup Foresees Stablecoins Reaching $3.7 Trillion by 2030

Citigroup's recent analysis, released April 25, indicates stablecoins could reach a $3.7 trillion market cap by 2030, with significant financial shifts expected.

This development could reshape both the cryptocurrency market and traditional banking sectors as stablecoins gain regulatory clarity and wider adoption.

Stablecoin Market Surge to $3.7 Trillion by 2030

Citigroup's report suggests stablecoins could dramatically reshape financial industries by the decade's end, projecting a potential total market surge from $240 billion to $3.7 trillion under favorable conditions. The bank emphasizes that adoption in the financial and public sectors, propelled by new regulatory frameworks, may lead to historic changes. "A U.S. regulatory framework for stablecoins could drive net new demand for U.S. Treasuries, making stablecoin issuers among the biggest holders of U.S. Treasuries by 2030," predicted Citigroup Financial Analysts, Citigroup, as discussed in their analysis of the evolving regulatory environment for digital assets.

Immediate changes include increased integration of stablecoins with traditional finance, potentially leading to stablecoin issuers becoming primary holders of U.S. treasuries. Citi’s baseline scenario predicts a $1.6 trillion market cap by 2030, contrasting sharply with a modest $500 billion if regulatory hurdles persist.

Market reactions include some U.S. banks pushing for restrictions on non-bank stablecoin issuers, emphasizing friction within traditional banking. Stablecoin issuer Tether already holds substantial U.S. debt, prompting debates about the role of such cryptocurrencies in financial ecosystems.

Regulatory Factors Shaping Stablecoin Future

Did you know? In past market shifts, regulatory changes in the financial sector have fueled significant surges, akin to what Citigroup predicts for stablecoins by 2030. Similar inflections have historically sparked widespread integration with traditional financial systems.

Tether USDt (USDT) maintains a stable price at $1.00, sustaining a market capitalization of $146.06 billion, according to CoinMarketCap. With a dominant market presence, USDT reports a 24-hour trading volume of $70.40 billion, despite a slight 0.05% price uptick over 90 days.

Coincu's research team highlights that the U.S. regulatory landscape may determine stablecoin growth, with new legislation potentially elevating stablecoins into primary financial instruments across markets, affecting debt issuance and traditional banking systems.