(29 April 2025 – Global) Citi forecasts that the total outstanding supply of stablecoins could expand from US$230 billion to as much as US$3.7 trillion by 2030.
The changing regulatory landscape being driven by US President Trump could see 2025 being blockchain’s ‘ChatGPT’ moment and also drive huge growth in stablecoins, according to research from Citi.
Stablecoins are a type of cryptocurrency designed to maintain a stable value by pegging their market price to a reference asset. This asset could be a fiat currency like the US dollar, a commodity like gold or a basket of financial instruments.
As of April 2025, the total outstanding supply of stablecoin had crossed US$230billion, an increase of 54 percent since April 2024. The top two stablecoins dominate the ecosystem, with over 90 percent market share of volumes by value and transaction numbers, led by Tether (USDT) and followed by USD Coin (USDC).
The new Citi GPS report “Digital Dollars – Banks and Public Sector Drive Blockchain Adoption” predicts that up to 90 percent of the stablecoin supply will continue to be US dollar denominated. Other countries are focussing on CBDCs, a path Trump has asserted the US will not pursue.
“The goal is to align money movement with the speed of the internet and global commerce. Stablecoins could serve as the key utility to achieve that. The first step is legislative and regulatory clarity. There also need to be legal safeguards, such as limiting liability for multiple transaction ‘hops’” stated Citi TTS Global Head of Digital Assets, Ryan Rugg.
“We will certainly see more players, specifically banks and traditional players, enter the markets. USD-backed stablecoins will continue to dominate. Ultimately, the number
of players will be determined by how many different products will be needed to cover the major use cases, and it is likely to feature more players than the card network market” commented PwC Global and US Digital Assets Lead, Matt Blumenfeld.
“There are many opportunities for banks to engage with stablecoins. This could be a direct role as a stablecoin issuer or more indirect roles as part of the pay-in/pay-out solution, structured products around stablecoins, or liquidity provision in general. Banks will find a way to continue to be the interchange for money movement.”
“As users chase more attractive products and better experiences, we have seen deposits rotate out of the banking system. With stablecoin technology, banks have the opportunity to create better products and experiences while retaining deposits in the banking system, where users often prefer them to be secured, simply on new rails.”