Citigroup forecasts a surge in adoption of stablecoins and blockchain technology in 2025, comparing it to the rapid rise of ChatGPT. Regulatory clarity, particularly in the US, is expected to act as a catalyst for broader integration of these technologies in the financial system. The report suggests that the stablecoin market could grow to between $1.6 trillion and $3.7 trillion by 2030, depending on the regulatory environment. US stablecoins may dominate, while non-US countries could leverage central bank digital currencies (CBDCs) instead. Legislative discussions around stablecoin regulation are ongoing, focusing on ensuring safety and reliability for transactions. Although the stablecoin market cap exceeds $230 billion, challenges remain, such as risks of depegging and industry adoption hurdles. Citigroup anticipates that stablecoin issuers could accumulate significant holdings in US Treasuries, strengthening their stability against market fluctuations.

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