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| Citibank |
Institutional Adoption and Payment Integration Drive Massive Growth Projections
Stablecoins may soon eclipse traditional crypto trading in market size, according to a new Citi Future Finance report. With growing institutional usage and regulatory support, Citi estimates stablecoins could reach $1.6 trillion by 2030. In a bullish scenario, the market may even soar to $3.7 trillion, overtaking the current $3.45 trillion crypto market cap.
Leading stablecoins like Tether (USDT) and Circle’s USDC are becoming widely used for remittances, payments, and bank-level cash management. Ronit Ghose, Citi’s Global Head of Future Finance, emphasized that stablecoins are now mainstream finance tools, not just crypto-native assets.
Infrastructure provider Fireblocks confirmed this trend, revealing that payment firms now make up 16% of stablecoin transactions, up from 11%. In Q1 alone, payment firms drove $82 billion in stablecoin volume, with total transaction volume growing over 30% quarter-over-quarter.
Citi's analysis also suggests stablecoins will likely coexist with central bank digital currencies (CBDCs). While Europe may favor CBDCs, the U.S. appears more supportive of privately issued stablecoins.
Banks are expected to adopt both models—leveraging stablecoins, CBDCs, and tokenized deposits for retail and interbank transactions. Ghose described this evolving battle as “the Empire vs. Luke Skywalker,” with stablecoins representing innovation from the ground up.
This shift positions stablecoins as major players in global finance. Their rapid evolution is reshaping the future of payments, remittances, and digital money infrastructure.