Citigroup has forecast a substantial increase in the stablecoin market, predicting that its total market capitalization could leap from nearly $240 billion today to over $2 trillion by 2030.
In a report published on Thursday, the bank attributes this anticipated growth to regulatory advancements and heightened interest from both the public sector and financial institutions.
Under its base-case scenario, Citigroup estimates that the stablecoin supply could reach approximately $1.6 trillion by the decade’s end, while a more optimistic projection places the figure at $3.7 trillion.
Citigroup Warns Stablecoin Market Could Stall at $500B Without Regulatory Progress
However, the report also contains a warning: without progress on regulatory fronts and solutions to integration challenges, the market might be confined to a mere $500 billion.
This report is released amid a dynamic regulatory framework in the United States, where the pro-crypto stance of the Trump administration has rekindled momentum for stablecoin legislation.
Current congressional reviews in both chambers could facilitate the issuance of U.S. dollar-backed stablecoins by traditional financial institutions like Bank of America.
Citigroup emphasized that well-defined regulations could significantly enhance the demand for U.S. Treasuries, positioning stablecoin issuers to become prominent holders of government debt by 2030.
Citibank report on Digital Dollars (aka dollar stablecoins). Tons of TLDRs, including page 7 (included here), but Citi now sees $1.6T to $3.5T in dollar stablecoin money supply by 2030. 2025 is the transformative year.https://t.co/0AwH4eciLs pic.twitter.com/0HRyIVK0Pc
— Jeremy Allaire – jda.eth / jdallaire.sol (@jerallaire) April 24, 2025
Tether, the dominant stablecoin issuer, reportedly holds significant investments in U.S. Treasuries, according to its latest reserves update.
While Citigroup recognizes the potential for stablecoins to be transformative, it also raised concerns about their capacity to disrupt traditional banking through “deposit substitution.”
Reportedly, some banks are advocating for stricter regulations to limit stablecoin issuance to certain entities, aiming to protect their established roles as stablecoin adoption rises.
Active Stablecoin Wallets Surge Over 50% in One Year
Recent statistics indicate that the number of active stablecoin wallets has soared by over 50% in the last year, signaling increased adoption and engagement within the digital asset market.
Specifically, active stablecoin addresses rose from 19.6 million in February 2024 to 30 million in February 2025, marking a 53% increase year-on-year.
This uptick has been fueled by factors such as greater institutional participation, expanding usage in payment systems, and deeper integration within decentralized finance (DeFi).
These elements have solidified stablecoins as essential components of the digital economy, providing liquidity, stability, and accessibility for global users.
In addition to the growth in active addresses, the overall stablecoin supply also experienced a dramatic increase. In February 2024, total supply stood at $138 billion, surging to $225 billion by February 2025, which represents a 63% year-on-year growth.
Recently, Federal Reserve Governor Christopher Waller commented on stablecoins, suggesting that U.S. dollar-pegged digital assets could bolster the dollar’s position in the global market.
Waller asserted that stablecoins are already playing a significant role in the broader financial ecosystem.
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