Citi, a global banking and financial services firm, has updated its stablecoin forecasts in light of significant sector growth over the past six months, now predicting the stablecoin market cap could reach $4 trillion by 2030.
Analysts at Citi anticipate a stablecoin market of $1.9 trillion as their “base” case, with a “bull” case reaching up to $4 trillion, an increase from earlier estimates of $1.6 trillion and $3.7 trillion, respectively, as mentioned in Thursday’s forecast.
Citi analysts further indicated that stablecoins are unlikely to disrupt the banking sector, contrary to the banking industry’s concerns, but instead will assist in reforming the financial system alongside tools like tokenized bank deposits. Citi stated:
“Skeptics once again assert that banks will be disintermediated, but we believe crypto will not dismantle the existing system. Rather, it’s facilitating a reimagining of it.”
The stablecoin market capitalization surpassed the $280 billion milestone in September, according to RWA.XYZ, which reported over $287 billion in value at the time of writing.
Following the enactment of the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act, which created a thorough regulatory framework for stablecoins, issuance has surged, setting the stage for continued sector expansion.
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Sovereign governments eye stablecoins to strengthen their fiat currencies
In March, US Treasury Secretary Scott Bessent noted that stablecoins could enhance US dollar dominance by making the currency more widely accessible globally.
Since that declaration, stablecoins have become a cornerstone of US President Donald Trump’s administration’s strategy to establish US leadership in the crypto sector.
Following the GENIUS stablecoin bill’s passage, other sovereign nations have begun considering the development of their own stablecoins to improve the salability of their local currencies in international foreign exchange markets.
The Chinese government, which has historically opposed cryptocurrencies and privately-issued currencies, reversed its stance in August and is reportedly now considering yuan-backed stablecoins for international application.
AnchorX, a financial technology firm, launched the first offshore yuan-backed stablecoin in September. This token is designated solely for cross-border commercial use and will not be accessible to residents on the Chinese mainland.
Magazine: While crypto aimed to undermine banks, it’s now evolving to resemble them in the stablecoin battle
