Citi predicts that 2025 may be a pivotal year for blockchain adoption, largely fueled by the growth of stablecoins. The stablecoin market, predominantly linked to the U.S. dollar, could escalate to $3.7 trillion by 2030 if accompanied by regulatory support. Major stablecoin issuers like Tether and Circle have already experienced significant growth in use for payments and remittances. The bank's report highlights a potential scenario where issuers could hold $1.2 trillion in U.S. Treasury securities by the decade's end, possibly overtaking foreign holders. Regulatory clarity is expected to enhance the integration of stablecoins into the financial system, enabling faster and more efficient payment methods. However, there are risks such as the high rate of stablecoin de-pegging observed in 2023 that could inhibit growth. Thus, while Citi maintains a bullish outlook on stablecoins, it acknowledges challenges that could affect their market trajectory, estimating a base case of $1.6 trillion and a bear case of $500 billion.

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