The stablecoin market is experiencing a rapid expansion, outpacing previous expectations and setting the stage for a dynamic decade in digital finance. According to a recent report by Citi, the market for stablecoins has grown significantly, with issuance volumes increasing from approximately $200 billion at the start of 2025 to a robust $280 billion as of Thursday. This uptick has prompted Citi to revise its forecasts for 2030, predicting stablecoin issuance could reach $1.9 trillion in a base case scenario and a staggering $4 trillion in a more optimistic bull case, up from earlier predictions of $1.6 trillion and $3.7 trillion respectively.
The Rise of Stablecoins
Stablecoins, digital currencies pegged to traditional assets like the US dollar, have gained traction for their promise of stability in the volatile cryptocurrency market. Their growth, as Citi suggests, could support up to $100 trillion in annual transactions by 2030 under the base scenario, and twice that amount if market conditions align with the bull case. This forecast is underpinned by the assumption that stablecoins will circulate with a velocity similar to fiat currencies, highlighting their potential in the broader financial ecosystem.
Citi likens this growth trajectory to a “ChatGPT moment” for blockchain technology, where innovative, digitally native companies are driving adoption in real-world commerce. The implication is clear: stablecoins are not just a niche product for crypto enthusiasts but are becoming integral to everyday financial transactions.
A Broader Financial Reimagining
Despite their impressive growth, Citi’s report acknowledges that stablecoins are unlikely to monopolize on-chain finance. Instead, they are part of a larger reimagining of financial infrastructure that includes various forms of digital money. Among these, bank tokens — such as tokenized deposits — are poised to play a significant role. Driven by corporate demand for regulatory safeguards, real-time settlement, and embedded compliance, bank tokens could see higher transaction volumes than stablecoins.
Citi estimates that even a modest migration of traditional banking operations to blockchain could push bank token turnover beyond $100 trillion by the end of the decade. This suggests that while stablecoins are making headlines, the real story might be the broader shift of financial systems toward blockchain technology.
The Persistent Role of the U.S. Dollar
Amidst these developments, the U.S. dollar continues to play a central role in on-chain finance. Most digital currencies remain dollar-denominated, which fuels demand for U.S. Treasuries. However, the landscape is not static; regions like Hong Kong and the UAE are emerging as hubs for financial experimentation, potentially challenging the dollar’s dominance in the future.
Citi views the rise of stablecoins not as an existential threat to traditional banking but as a complementary evolution. Different forms of digital money — including stablecoins, bank tokens, and central bank digital currencies (CBDCs) — are expected to coexist, each carving out its niche in the financial landscape. This diversity of digital money forms reflects a balanced perspective on the future of finance, where collaboration and coexistence are key.
Challenges and Opportunities
While the growth of stablecoins presents exciting opportunities, it also poses challenges. Regulatory scrutiny is intensifying as governments around the world grapple with how to manage and integrate these new forms of money into existing financial systems. Ensuring consumer protection, financial stability, and preventing illicit activities are top priorities for regulators.
On the flip side, the integration of stablecoins into mainstream finance could enhance financial inclusion by providing access to financial services for unbanked populations. It could also streamline cross-border transactions, reducing costs and increasing efficiency for businesses and consumers alike.
Looking Ahead
As we approach 2030, the stablecoin market’s trajectory will likely depend on a complex interplay of technological advancements, regulatory developments, and market dynamics. Citi’s report offers a glimpse into a future where digital currencies are not just an alternative but an integral part of the financial ecosystem.
In this evolving landscape, stakeholders — from governments and financial institutions to tech companies and consumers — will need to navigate both opportunities and challenges. The potential for stablecoins to reshape finance is immense, but realizing this potential will require careful coordination and forward-thinking strategies.
As the digital financial revolution unfolds, one thing is clear: stablecoins and other forms of digital money are here to stay, promising to transform the way we think about and interact with money. Whether this transformation leads to a more efficient, inclusive, and resilient financial system remains to be seen, but the journey will undoubtedly be fascinating to watch.
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
