Citi Forecasts Stablecoins’ Expansion Beyond Crypto Into Mainstream Economy
Stablecoins are poised to transcend their origins as crypto trading instruments and penetrate the traditional financial system, according to a Citi research report. Regulatory clarity may accelerate their adoption for payments, remittances, and even as substitutes for foreign currency reserves.
The bank’s Future Finance think tank projects yield-bearing stablecoins could eventually compete with bank deposits. This evolution mirrors the trajectory of money market funds in the 1970s - first as niche products, then as systemic liquidity vehicles.