The stablecoin sector is getting into a interval of accelerated adoption corresponding to the early development of generative synthetic intelligence (AI) instruments like ChatGPT and will hit a market cap of over $1.6 trillion by 2030.
Based on a brand new report revealed on April 24 by Citi Group’s World Views & Options unit, stablecoins at the moment are shifting from crypto-centric purposes to broader monetary and public sector use instances.
The shift is underpinned by growing regulatory readability, sturdy institutional curiosity, and demand from international markets for US dollar-denominated digital property.
The report paralleled the early phases of ChatGPT’s adoption with the present part of stablecoin development, framing 2025 because the turning level the place they develop into extra built-in with the worldwide financial system.
Below Citi’s bullish situation, the stablecoin market may hit a mixed market cap of over $3.7 trillion by 2030. The present marketplace for stablecoins sits above $230 billion, having grown practically 30x over the previous 5 years.
Institutional demand and macro drivers
The Citi report identifies regulatory progress, notably within the US and Europe, as a key issue enabling stablecoins to broaden past their authentic function in crypto buying and selling and DeFi.
New US laws launched in early 2025 goals to determine the authorized framework for stablecoin issuance and reserves. In the meantime, the EU’s Markets in Crypto-Property (MiCA) regulation has set requirements throughout the bloc.
This regulatory momentum has coincided with demand from rising markets, the place entry to {dollars} is constrained, and from monetary establishments exploring stablecoin infrastructure for funds, settlements, and liquidity administration.
The report famous that banks and cost suppliers are starting to combine stablecoins into current monetary methods, eradicating obstacles that after confined stablecoins to crypto-native use. Specifically, Citi projected that demand for stablecoins will create a brand new supply of buying exercise for US Treasuries.
Issuers backing their tokens with protected, liquid property may maintain extra Treasuries by 2030 than any present international jurisdiction, including over $1 trillion to Treasury demand beneath the financial institution’s base case.
Use instances broaden past crypto
Whereas crypto buying and selling stays the biggest use case, accountable for as much as 95% of present stablecoin volumes, Citi projected development in areas comparable to B2B cross-border funds, client remittances, and institutional capital markets exercise.
Rising markets comparable to Argentina, Nigeria, and Turkey are additionally contributing to the retail adoption of stablecoins, as they function a hedge towards inflation and forex volatility. In the meantime, remittance corridors are steadily shifting from conventional channels to stablecoin-enabled flows on account of decrease prices and sooner settlement occasions.
On the institutional aspect, main asset managers and fintech companies are piloting stablecoin-based settlements for funds, treasury operations, and liquidity provisioning, reflecting confidence within the infrastructure and regulatory panorama.
Citi in contrast the potential trajectory of stablecoins to that of the cardboard cost business, suggesting that whereas a number of dominant issuers could emerge, nationwide gamers and public-private fashions are additionally anticipated to proliferate.
This might mirror the rise of regional card networks in nations like Brazil and India, the place native rules help home monetary sovereignty. The report emphasised the significance of belief, reserve transparency, and person expertise in figuring out which stablecoins obtain mainstream penetration.
It additionally famous that long-awaited regulatory readability has eliminated one of many sector’s largest obstacles, enabling incumbents and challengers alike to construct providers on extra predictable authorized foundations.
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