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Rising use in Hong Kong, the UAE, and other markets underscores stablecoins\u2019 growing global footprint.<\/p>\n
Citi projects that stablecoins<\/a> could reach $1.9 trillion in issuance by 2030 as its base case, and up to $4 trillion in a bullish scenario, according to a new report<\/a> from Citi\u2019s Global Perspectives & Solutions (GPS) unit.<\/p>\n That\u2019s higher than Citi\u2019s<\/a> earlier forecast of $1.6 trillion and $3.7 trillion, respectively. Currently, stablecoins have a market capitalization of $295.79 billion, up 42% since January, per DeFiLlama. <\/p>\n The bank also projects that stablecoins could process about $100 trillion in payments each year by 2030, or up to $200 trillion in a best-case scenario. Whereas, bank tokens like tokenized deposits could handle $100 trillion to $140 trillion annually.<\/p>\n While the bank highlighted that these figures \u201cmay appear large to the layperson,\u201d they are still relatively small compared to leading banks, which currently move between $5 trillion and $10 trillion per day. <\/p>\n \u201cWe see an ecosystem where stablecoins, tokenized deposits, deposit tokens, and CBDCs can all flourish and co-exist,\u201d the report noted. \u201cDifferent forms of money will find different product market fit with usage shaped by trust, interoperability, and regulatory clarity.\u201d<\/p>\n Citi identified the main drivers behind the growth and projections as new corporate initiatives, regulatory clarity \u2013 including the recently passed stablecoin-focused GENIUS Act \u2013 and increasing demand from digitally native firms.<\/p>\n The report also found that on-chain volumes are expected to remain heavily USD-denominated, which in turn will generate additional demand for U.S. Treasuries. Yet, Citi emphasized that hubs such as Hong Kong and the UAE are also fueling growth.<\/p>\n However, as stablecoins and tokenized deposits grow, traditional banks will need to adjust their services, while regulators could face pressure to clarify rules for digital money, the report said. This shift could change payments, liquidity, and cross-border finance in the years ahead.<\/p>\n These changes could have ripple effects, particularly as dollar-backed stablecoins gain prominence. For example, local prices in emerging and developing markets could become more sensitive to U.S. monetary policy, \u201cthereby reducing the central banks\u2019 ability to manage domestic inflation,\u201d the report notes. <\/p>\n The report also noted that efforts to defend the local currency against rising dollar-backed stablecoin demand could \u201cstrain FX reserves and increase macroeconomic vulnerabilities.\u201d<\/p>\n Citigroup Inc.<\/a> is the third-largest U.S. bank with around $1.7 trillion in total consolidated assets<\/a>. Earlier this year, news broke that the bank was exploring plans to launch its own stablecoin, joining a growing list of major banks and institutions expanding into the crypto space.<\/p>\nGrowing Global Footprint <\/h2>\n