TLDR
- Citi forecasts the stablecoin market could reach up to $4 trillion by 2030.
- The revised forecast reflects a significant upward adjustment from the previous projection of $1.6 trillion.
- The stablecoin market has seen a growth from $200 billion to $280 billion in 2025 alone.
- Stablecoins could facilitate up to $100 trillion in transactions annually by 2030.
- Cross-border payments are identified as a key area where stablecoins could reduce costs and improve speed.
According to a recent report by Citi, the stablecoin market is on track to reach a total issuance of up to $4 trillion by 2030. This forecast represents an optimistic outlook on stablecoins, with Citi analysts projecting both a base case of $1.9 trillion and a bull case of $4 trillion.
The projection has been revised upward from an earlier estimate of $1.6 trillion, reflecting strong growth in the sector. Citi’s analysts attribute the surge in growth to a combination of crypto-native platforms and traditional financial institutions entering the market.
Strong Growth Expected for Stablecoin Market in 2025
Citi’s report highlighted a significant increase in the stablecoin market’s cap from $200 billion to $280 billion in 2025 alone. This increase underscores the growing importance of stablecoins in the financial ecosystem. The report suggested that if the pace of growth continues, stablecoins could facilitate up to $100 trillion in transactions annually. While this figure is substantial, it remains relatively small compared to the daily $5 trillion to $10 trillion moved by top global banks.
The report’s authors, Ronit Ghose and Ryan Rugg, described stablecoins as a “catalyst for blockchain’s ChatGPT moment” in the institutional space. They compared the current situation in crypto to the dotcom boom of the late ‘90s, when the internet’s potential was underestimated. The analysts expressed optimism that crypto would not replace the existing financial system but instead help reimagine it.
Bank Tokens May Outpace Stablecoins by 2030
Despite the optimistic forecast, Citi remains cautious about the widespread adoption of stablecoins. According to the report, most countries already have efficient payment systems, with real-time transactions at a low cost. This means that stablecoins are unlikely to disrupt domestic payments, where fintech systems are already advanced.
The real potential for stablecoins lies in the cross-border payments sector, which remains slow and expensive. Stablecoins could significantly reduce costs and improve the speed of international money transfers. However, fintech apps and banks have already begun to make strides in cutting costs and speeding up cross-border transactions.
Though stablecoins have gained traction, many companies remain hesitant about fully adopting them. Citi noted that most firms are “curious rather than enthusiastic” about integrating stablecoins into their operations.
Instead, many businesses prefer using bank tokens, also known as tokenized deposits, which are digital versions of traditional bank money. These tokens benefit from regulation and might handle more transactions than stablecoins by 2030.
