Citibank has significantly revised its outlook on stablecoins, casting them as the fundamental infrastructure that will power the next major phase of growth in the crypto market. The bank now projects that by 2030, the stablecoin market could reach a staggering $1.9 trillion in its base case, with a bullish scenario of up to $4 trillion, up from previous forecasts of $1.6 trillion and $3.7 trillion respectively.
This upward revision is largely due to what Citi identifies as a “ChatGPT moment” for blockchain within major institutions, signaling a breakthrough in its perceived utility and a surge in institutional adoption. The strong market growth in 2025, which saw stablecoin circulation explode from about $200 billion to $280 billion, is a key indicator of this accelerating trend.
The Drivers Behind the Stablecoin Surge
The projected growth isn’t happening in a vacuum. It’s being fueled by powerful, real-world financial needs that traditional systems struggle to meet.
A primary driver is significant global demand for U.S. dollars, particularly in emerging markets where local currencies may be volatile. Stablecoins offer a digital dollar alternative, functioning as a stable store of value and a hedge against inflation. Furthermore, the legacy system for cross-border payments is often slow and expensive, relying on multiple intermediaries. Stablecoins provide a compelling solution by enabling near-instant, low-cost international transfers, bypassing these traditional hurdles.
A major catalyst for this growth has been the passage of the GENIUS Act in the U.S., which established a comprehensive regulatory framework for stablecoins and lent legitimacy to the asset class. This regulatory clarity is encouraging further institutional exploration and adoption.
Reshaping Finance and What Comes Next
Citi’s analysis suggests that stablecoins are evolving beyond a tool for crypto trading into a core component of the global financial architecture. This shift has profound implications.
For market structure, this growth could translate into massive transaction volume, with Citi estimating that $1.9 trillion in stablecoin issuance could support nearly $100 trillion in annual transactions. This would deeply integrate stablecoins into the plumbing of global finance. For corporations and institutions, the appeal lies in operational efficiency. Stablecoins enable faster, cheaper, and programmable B2B payments and settlements, available 24/7, which can revolutionize treasury management and cross-border trade.
Looking ahead, Citi expects different forms of digital money to coexist. While stablecoins will grow, “bank tokens” or tokenized deposits issued by traditional banks might see even higher transaction volumes as corporates seek the regulatory safeguards of established banking partners. The success of this new financial layer will hinge on the development of robust supporting infrastructure, including secure custody services—like the one Citi itself plans to launch in 2026—and solutions that ensure different blockchain networks can interoperate seamlessly.
