Stablecoin Value to Overtake Current Crypto Market Cap, Citi Predicts

A report from Citi’s Future Finance think tank predicts the stablecoin market could surpass the current size of the combined crypto industry, growing to US$3.7 trillion by 2030.Citi predicts growth from increased mainstream use of stablecoins payments, a shift away from bank notes and towards stablecoins to hold US currency, and an increase in household and business liquidity held in stablecoins.Stablecoin regulation remains hotly contested, particularly in the US — last week legislation seeking to establish a stablecoin regulatory framework failed to pass the US senate.A recent report from Citi’s Future Finance think tank suggests that the size of the stablecoin market could soon surpass the current total market cap of all cryptocurrencies, which according to CoinGecko is just over US$3.5 trillion (AUD$5.4t).Citi’s base case prediction sees the total outstanding supply of stablecoins growing to US$1.6 trillion (AUD$2.4t) by 2030, while its bull case puts that figure as high as US$3.7 trillion (AUD$5.7t).The report, titled ‘Digital Dollars: Banks and Public Sector Drive Blockchain Adoption’ predicts 2025 could be the year stablecoins have their “ChatGPT moment” — where they begin to gain widespread adoption in the financial and public sectors, driven by regulatory advances. The report also hedges its bets, stating that stablecoin growth may stall out at around US$500 billion (AUD$778.8b) if “adoption and integration challenges persist”.Currently the size of the stablecoin market is around US$250 billion (AUD$385b) — the Citi base case prediction would mean an increase of about 600% by 2030, while the bull case would mean 1500% growth. The investment bank thinks stablecoin use cases could expand beyond acting as tokenised cash for crypto traders and playing more of a role in facilitating payments and remittances in the mainstream economy. Further driving up stablecoin supply, it forecasts:A shift in overseas and domestic US currency holdings away from banknotes towards stablecoins; and An increase in short-term liquidity being held in stablecoins by households and businesses. Citi also predicts stablecoin issuers could purchase as much as US$1 trillion in net new US Treasuries by 2030 to back their stablecoins — which, according to the report, would mean: ...stablecoin issuers could hold more US Treasuries by 2030 than any single jurisdiction today. Citi’s Digital Dollars report Speaking to CoinDesk, Ronit Ghose, the global head of Future of Finance at the Citi Institute said: We’re looking at the integration of stablecoins into what you call the mainstream economy. For example, stablecoins could be the cash leg for tokenized financial assets, or for payments by SMEs and large corporates. Ronit Ghose, Citi Institute “The dollar, and to a lesser extent the euro, has this kind of international currency status. Stablecoins allow people all over the world to hold dollars or euros in an easy, low cost way,” Ghose said.Related: Tether Posts $1B Profit, Reveals $120B in US Treasury Exposure in Q1 2025 FinancialsStablecoin Regulation Still a Work in ProgressMuch of the growth predicted in Citi’s report hinges on stablecoins being properly regulated. However, stablecoin regulation is still a hotly contested issue, particularly in the US.Last week, legislation that aimed to establish a stablecoin regulatory framework, known as the GENIUS Act, failed to pass the US Senate — attracting only 49 of the 60 votes it needed to clear the chamber. Notably, two Republican senators, Senator Josh Hawley and Senator Rand Paul, joined Democrats in rejecting the bill.“While we’ve made meaningful progress on the GENIUS Act, the work is not yet complete, and I simply cannot in good conscience ask my colleagues to vote for this legislation when the text isn’t finished,” said Democratic Senator Mark Warner, who had previously voted in support of the bill in the Senate Banking Committee.Related: Trump‐linked Crypto Windfall Triggers Democratic Mutiny, Puts GENIUS Act on the BrinkDemocrat concerns around stablecoins have been heightened by the Trump family’s increasing entanglements with the crypto industry. In particular, a deal announced last week will see Abu Dhabi use the USD1 stablecoin, which is owned by the Trump family-backed DeFi project World Liberty Financial, to invest US$2 billion in the cryptocurrency exchange Binance.The post Stablecoin Value to Overtake Current Crypto Market Cap, Citi Predicts appeared first on Crypto News Australia.