Citi Forecasts Stablecoin Market Could Reach $4 Trillion by 2030

Wall Street giant Citi just dropped a bombshell prediction that could reshape global finance.

The $4 Trillion Opportunity

Stablecoins aren't just crypto's boring cousin anymore—they're becoming the backbone of digital finance. Citi's analysis suggests these dollar-pegged assets will explode from their current size to dominate cross-border payments and institutional trading.

Banking's Silent Disruption

Traditional settlement systems watch out. Stablecoins cut transaction times from days to seconds while bypassing legacy banking infrastructure. The report highlights how these digital assets could become the preferred settlement layer for everything from forex to commodities trading.

Regulatory Hurdles Ahead

Of course, banks will lobby fiercely to protect their turf—nothing motivates legacy institutions like the threat of actual competition. The path to $4 trillion requires clear regulatory frameworks that don't strangle innovation in the crib.

By 2030, we might not even call them 'crypto' assets anymore—just how we move value globally.

TLDR

• Citi now forecasts stablecoins could reach $1.9 trillion to $4 trillion by 2030.
• Bank tokens might surpass stablecoins in transaction volume by 2030.
• Stablecoins could support up to $200 trillion in annual transactions by 2030.
• U.S. dollar remains dominant in on-chain finance despite emerging hubs.

The stablecoin market is on track for major growth, with Citigroup revising its forecast for 2030. The bank now predicts stablecoins could reach $1.9 trillion in the base case and $4 trillion in the bull case. This updated projection reflects faster-than-expected adoption and a growing reliance on blockchain technology, which is being embraced by digitally native companies in real-world commerce.

Stablecoin Forecast Raised by Citi

Citi has raised its 2030 forecast for the stablecoin market, predicting substantial growth in the coming years. In a newly updated report, the bank now estimates that stablecoin issuance could reach $1.9 trillion in its base case and $4 trillion in its more optimistic scenario.

These figures are an increase from the previous projections of $1.6 trillion and $3.7 trillion. Citi attributes this growth to an accelerating adoption of blockchain technology and increasing use of stablecoins by companies in everyday business operations.

As of 2025, stablecoin issuance volumes have already surpassed $200 billion and are now approaching $280 billion. The report underscores the broader trend of blockchain adoption, especially among businesses that are familiar with digital tools and innovations.

According to Citi, the “ChatGPT moment” of blockchain refers to the point when its application in mainstream industries reaches its full potential. The bank expects that as digital companies become more integrated into global commerce, stablecoins will play a larger role in facilitating transactions.

Stablecoins and Transaction Volume Projections

Citi further suggests that stablecoins could support a significant volume of transactions by 2030. The report states that if stablecoins achieve a velocity similar to traditional fiat currencies, they could enable annual transactions up to $100 trillion under the base case and $200 trillion in the bull case. The growing velocity of stablecoins is expected to mirror the speed and scale of fiat currency use, with an increasing shift toward blockchain-based financial infrastructure.

Blockchain technology, with its speed and transparency, is driving the rise of stablecoins. Many businesses are adopting stablecoins to streamline cross-border payments, reduce transaction costs, and enhance security. The market’s growth reflects an increased demand for more efficient payment systems and the desire for stable digital assets. Citi’s report highlights the potential of stablecoins to facilitate a new era of financial transactions, where digital money is more widely accepted and integrated into various industries.

Bank Tokens and Regulatory Demand

While stablecoins are expected to see significant growth, Citi’s report notes that bank tokens, such as tokenized deposits, may ultimately surpass stablecoins in transaction volume. This shift could be driven by increasing corporate demand for compliance with regulations and the need for real-time settlement. As businesses look for ways to meet regulatory standards while also benefiting from faster, cheaper transactions, the adoption of tokenized deposits could rise.

The bank estimates that a small migration of traditional banking processes onto the blockchain could push bank token turnover beyond $100 trillion by 2030. Bank tokens, which are digital representations of deposits or cash held at banks, offer the advantage of adhering to regulatory frameworks while also benefiting from the speed and efficiency of blockchain technology. These tokens could help bridge the gap between traditional financial systems and the emerging digital economy.

U.S. Dollar’s Continued Dominance

Despite the rise of stablecoins and other digital currencies, Citi’s report confirms the continued dominance of the U.S. dollar in on-chain finance. Most stablecoins are still dollar-denominated, and demand for U.S. Treasuries remains high among investors. However, Citi also points to emerging hubs like Hong Kong and the UAE, which are experimenting with alternative regulatory frameworks and digital money.

The U.S. dollar’s position as the dominant currency in digital finance is expected to persist for the foreseeable future. However, as new financial centers emerge and digital currencies become more widely used, the landscape of on-chain finance will likely evolve. Citi anticipates that stablecoins, bank tokens, and Central Bank Digital Currencies (CBDCs) will coexist in a reimagined financial infrastructure.