Citigroup Predicts Stablecoin Market Growth by 2030
Citigroup released a report on September 25 forecasting the global stablecoin market could reach $4 trillion by 2030 in a bull-case scenario. The base case projects a $1.9 trillion market size. This is an increase from Citi’s previous estimate of $1.6 trillion in the base case and $3.7 trillion in the bull case.
The report also estimates stablecoins could support up to $100 trillion in annual transaction volume. However, Citi notes this is still small compared to the trillions handled daily by major global banks. The bank warns that cross-border payments may remain slow due to efficient domestic payment systems in many countries.
Competition and Market Trends
Citi highlights competition from other digital assets, especially bank-issued tokens. These tokens are favored by corporations for their regulatory clarity. The report predicts bank token trading volume could surpass stablecoins, potentially exceeding $100 trillion in transaction value by 2030.
According to DeFiLlama, the current global stablecoin supply is $295.76 billion. It has grown over 6% in the past month, driven by strong market growth and numerous project announcements worldwide.
Industry Perspectives on Stablecoins and Digital Finance
Shahmir Khaliq, Global Head of Services at Citi, said, “The movement towards using blockchain technology for instantaneous settlement and real-time confirmation is a natural progression towards a 24×7, always-on world.” He added that Citi is investing in integrating blockchain with its client offerings.
Report co-authors Ronit Ghose and Ryan Rugg called stablecoins the “catalyst for blockchain’s ChatGPT moment.” They compared current crypto developments to the early internet days when its full potential was underestimated. The report states crypto is helping to “reimagine” the financial system rather than replace it.
Citi concludes that stablecoins, bank tokens, and central bank digital currencies (CBDCs) will coexist. Each will serve different roles, contributing to a smarter and faster financial infrastructure.
Read the full Citigroup stablecoin report.
