The stablecoin sector is entering a period of accelerated adoption comparable to the early growth of generative artificial intelligence (AI) tools like ChatGPT and could hit a market cap of over $1.6 trillion by 2030.
According to a new report published on April 24 by Citi Group’s Global Perspectives & Solutions unit, stablecoins are now moving from crypto-centric applications to broader financial and public sector use cases.
The shift is underpinned by increasing regulatory clarity, strong institutional interest, and demand from global markets for US dollar-denominated digital assets.
The report paralleled the early stages of ChatGPT’s adoption with the current phase of stablecoin growth, framing 2025 as the turning point where they become more integrated with the global economic system.
Under Citi’s bullish scenario, the stablecoin market could hit a combined market cap of over $3.7 trillion by 2030. The current market for stablecoins sits above $230 billion, having grown nearly 30x over the past five years.
Institutional demand and macro drivers
The Citi report identifies regulatory progress, particularly in the US and Europe, as a key factor enabling stablecoins to expand beyond their original role in crypto trading and DeFi.
New US legislation introduced in early 2025 aims to establish the legal framework for stablecoin issuance and reserves. Meanwhile, the EU’s Markets in Crypto-Assets (MiCA) regulation has set standards across the bloc.
This regulatory momentum has coincided with demand from emerging markets, where access to dollars is constrained, and from financial institutions exploring stablecoin infrastructure for payments, settlements, and liquidity management.
The report noted that banks and payment providers are beginning to integrate stablecoins into existing financial systems, removing barriers that once confined stablecoins to crypto-native use. In particular, Citi projected that demand for stablecoins will create a new source of purchasing activity for US Treasuries.
Issuers backing their tokens with safe, liquid assets could hold more Treasuries by 2030 than any current foreign jurisdiction, adding over $1 trillion to Treasury demand under the bank’s base case.
Use cases expand beyond crypto
While crypto trading remains the largest use case, responsible for up to 95% of current stablecoin volumes, Citi projected growth in areas such as B2B cross-border payments, consumer remittances, and institutional capital markets activity.
Emerging markets such as Argentina, Nigeria, and Turkey are also contributing to the retail adoption of stablecoins, as they serve as a hedge against inflation and currency volatility. Meanwhile, remittance corridors are gradually shifting from traditional channels to stablecoin-enabled flows due to lower costs and faster settlement times.
On the institutional side, major asset managers and fintech firms are piloting stablecoin-based settlements for funds, treasury operations, and liquidity provisioning, reflecting confidence in the infrastructure and regulatory landscape.
Citi compared the potential trajectory of stablecoins to that of the card payment industry, suggesting that while a few dominant issuers may emerge, national players and public-private models are also expected to proliferate.
This could mirror the rise of regional card networks in countries like Brazil and India, where local regulations support domestic financial sovereignty. The report emphasized the importance of trust, reserve transparency, and user experience in determining which stablecoins achieve mainstream penetration.
It also noted that long-awaited regulatory clarity has removed one of the sector’s largest barriers, enabling incumbents and challengers alike to build services on more predictable legal foundations.
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