The stablecoin sector is on an accelerated growth trajectory, as recent data from Citi suggests issuance amounts have climbed significantly from around $200 billion at the beginning of 2025 to approximately $280 billion as of now. This rise has prompted the banking giant to adjust its predictions for the future of stablecoin issuance.
In its updated report, Citi has revised its 2030 projections, now estimating a base case issuance of $1.9 trillion, with a bullish scenario potentially reaching $4 trillion. These figures mark an increase from previous estimates of $1.6 trillion and $3.7 trillion, respectively, highlighting the growing acceptance and utilization of stablecoins within financial ecosystems.
Citi’s analysis indicates that should stablecoins circulate at a velocity analogous to that of traditional fiat currencies, they could facilitate transactions totaling up to $100 trillion annually by the end of the decade under the base case. The bullish outlook envisions this figure could even double, reflecting a monumental shift in how transactions could be conducted.
The bank attributes this rapid growth to what it describes as the “ChatGPT moment” for blockchain technology, where digitally-native businesses are driving the integration of stablecoins into everyday commerce. This adoption signifies a crucial shift towards a digital financial infrastructure.
However, the study acknowledges that while stablecoins are gaining traction, they may not monopolize the entire on-chain finance landscape. Bank-backed tokens, such as tokenized deposits, are predicted to generate even larger transaction volumes, primarily due to corporate needs for enhanced regulatory compliance, immediate settlement capabilities, and integrated compliance measures.
Citi estimates that a modest transition of traditional banking processes onto blockchain platforms could see transactional turnover from bank tokens exceed $100 trillion by 2030. This suggests a dual pathway of growth in the digital currency sphere: one dominated by stablecoins and another led by proprietary banking tokens.
Furthermore, the forecast emphasizes the persistent dominance of the U.S. dollar in the context of on-chain transactions, with most activities still denominated in USD. This continued reliance supports demand for U.S. Treasury securities, although regions like Hong Kong and the United Arab Emirates are emerging as innovative testing grounds for new financial technologies.
Citi clarifies that the ascent of stablecoins is not merely an attempt to usurp traditional banking systems, but rather part of a comprehensive reconfiguration of global financial infrastructure. As different types of digital currencies—comprising stablecoins, bank tokens, and Central Bank Digital Currencies (CBDCs)—evolve, there is potential for each to occupy distinct roles within the financial ecosystem, thereby enhancing functionality and accessibility for users.
This forward-looking perspective from Citi paints a vibrant picture of a future financial landscape where digital currencies coexist, each fulfilling specific needs and driving innovation across various sectors.
