According to a report by Citigroup, blockchain technology may experience a significant surge in adoption akin to the 'ChatGPT moment' by 2025, primarily driven by regulatory changes. Analysts at Citi predict that a combination of increased regulatory clarity in the US and heightened institutional adoption could propel the stablecoin market’s value to $1.6 trillion, or as high as $3.7 trillion by 2030. The firm emphasized that regulatory frameworks, such as the proposed US stablecoin legislation, could increase the integration of stablecoins into the existing financial system. Additionally, it is expected that stablecoins will predominantly remain US dollar-denominated, while international markets may push for CBDCs. However, the report indicates that challenges remain, including potential depegging risks that may dampen market liquidity.

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