Citi raises stablecoin market cap forecast to $4T by 2030

Citi, an international banking and financial services company, revised its stablecoin forecast due to the strong growth of the sector in the last six months, and now projects the stablecoin market cap will grow to $4 trillion by 2030.

Analysts at Citi project a $1.9 trillion stablecoin market as their “base” case and up to $4 trillion as the “bull” case, up from previous projections of $1.6 trillion and $3.7 trillion, respectively, according to Thursday’s forecast.

Analysts at Citi also said stablecoins would not disrupt the banking sector, contrary to concerns voiced by the banking industry, but would help overhaul the financial system, alongside tools like tokenized bank deposits. Citi wrote:

“Skeptics once again proclaim that banks will be disintermediated, but we do not believe crypto will burn down the existing system. Rather, it is helping us reimagine it.”

Stablecoin market capitalization broke past the $280 billion mark in September, according to RWA.XYZ, accounting for over $287 billion in value at the time of this writing

Stablecoin settlement surpasses $18 trillion per year and is higher than settlement on traditional payment channels like Visa and Mastercard. Source: Delphi DigitalStablecoin issuance proliferated following the passage of the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act in the United States, which established a comprehensive regulatory framework for stablecoins, paving the way for the sector’s continued growth.

Related: Stablecoins need consumer protections to unseat incumbents: Crypto exec

Sovereign governments look to stablecoins to bolster their fiat currencies

In March, US Treasury Secretary Scott Bessent said that stablecoins can help extend US dollar hegemony by making the dollar more accessible around the globe.

Since then, stablecoins have become a major pillar of US President Donald Trump’s administration and its plan to make the US the dominant power in the crypto sector.

Following the passage of the GENIUS stablecoin bill in the US, other sovereign countries began exploring the idea of launching their own stablecoins to extend the salability of their local fiat currencies in international foreign exchange markets.

A comparison of emerging market currencies losing value to the US dollar. Source: Delphi DigitalThe Chinese government, which has long been hostile to cryptocurrencies and privately-issued money, reversed course in August and is now reportedly considering yuan-backed stablecoins for international use

AnchorX, a financial technology company, debuted the first offshore-yuan backed stablecoin in September. The token will only be available for cross-border commercial use and will not be used by residents on the Chinese mainland.

Magazine: Crypto wanted to overthrow banks, now it’s becoming them in stablecoin fight

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