Citi predicts that the market value of stablecoins may exceed $1.6 trillion in 2030

Source: Blockchain Knights

The stablecoin space is entering a period of accelerated adoption, comparable to the early growth of generative AI tools such as ChatGPT, and is expected to exceed $1.6 trillion in market value by 2030.

According to a new report released by Citigroup's Global Vision and Solutions Division on April 24, the application scenarios of stablecoins are now expanding from the field of Crypto assets to the broader financial and public sectors.

This shift is supported by factors such as increased regulatory clarity, increased institutional interest, and global market demand for digital assets denominated in US dollars.

The report compares the early adoption stage of ChatGPT with the current growth stage of stablecoins, and believes that 2025 will be a turning point for the further integration of stablecoins into the global economic system.

Under Citi's optimistic forecast scenario, the total market value of the stablecoin market could exceed $3.7 trillion by 2030. Currently, the stablecoin market size has exceeded $230 billion, an increase of nearly 30 times in the past five years.

Institutional demand and macro drivers

The Citi report pointed out that regulatory progress, especially in the United States and Europe, is a key factor in promoting the expansion of stablecoins beyond their original roles in Crypto asset trading and DeFi.

In early 2025, the United States introduced new legislation aimed at establishing a legal framework for the issuance and reserve of stablecoins. At the same time, the European Union's Crypto Asset Market Regulation Act (MiCA) also sets standards across the entire European Union.

This positive progress at the regulatory level coincides with the needs of emerging markets. In emerging markets, where access to dollars is limited, financial institutions are also exploring the use of stablecoin infrastructure for payments, settlements and liquidity management. The report states that banks and payment providers are beginning to integrate stablecoins into the existing financial system, breaking the previous limitations of stablecoins being limited to native applications of Crypto assets. Citi specifically predicts that demand for stablecoins will create new demand for buying U.S. Treasuries. By 2030, the size of U.S. Treasuries held by issuers of stablecoins backed by safe, liquid assets could exceed that of any existing foreign jurisdiction. In Citi's base case scenario, this would add more than $1 trillion in demand to the U.S. Treasury market.

Application scenarios go beyond the scope of Crypto assets

Although Crypto asset transactions are still the largest application scenario for stablecoins, accounting for about 95% of the current stablecoin transaction volume, Citi 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 promoting the adoption of stablecoins in the retail sector as they can be used as a 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.

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

Citi draws an analogy between the potential trajectory of stablecoins and the bank card payments industry, arguing that while a few dominant issuers may emerge, national players and public-private partnerships are also expected to emerge in large numbers.

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

The report also notes that long-awaited regulatory clarity has removed one of the industry's biggest barriers, allowing existing players and new entrants alike to build services on a more predictable legal basis.