The stablecoin market is experiencing unprecedented growth, with issuance surging from approximately $200 billion in early 2025 to $280 billion currently, according to Citi's latest analysis.
The financial institution has significantly upgraded its 2030 projections, now forecasting stablecoin issuance reaching $1.9 trillion in baseline scenarios and an impressive $4 trillion in bullish market conditions.
With transaction velocities mirroring traditional fiat currencies, stablecoins could facilitate between $100-200 trillion in annual transactions by 2030. Citi describes this exponential growth as blockchain technology's "ChatGPT moment," driven primarily by digitally native enterprises embracing real-world commerce applications.
While stablecoins show remarkable potential, the report indicates they might not dominate the entire on-chain finance landscape. Bank-issued tokens and tokenized deposits could achieve higher transaction volumes due to corporate demand for regulatory compliance, real-time settlement capabilities, and embedded security features.
The analysis highlights the enduring dominance of U.S. dollar-denominated stablecoins, while recognizing emerging innovation hubs in Hong Kong and the UAE. Citi emphasizes that stablecoins represent an evolution rather than replacement of traditional banking, with various digital currency formats likely to coexist and serve distinct market needs.