Citigroup sees a future where stablecoins aren’t just a side note in crypto—they’re front and center. In a fresh report, the Citi Institute says the total supply of stablecoins market cap could reach $1.6 trillion by 2030, with the potential to go as high as $3.7 trillion if adoption picks up faster than expected.
The prediction comes as part of a broader outlook on blockchain’s role in reshaping finance and government operations.
Stablecoins—crypto tokens pegged to traditional currencies like the US dollar—have seen explosive growth in recent years. Citi’s report says that momentum isn’t slowing down. In fact, issuers of stablecoins could become major buyers of US Treasuries by the end of the decade.
In 2024, Tether (USDT) was already one of the top seven holders of US government debt. By 2030, Citi expects stablecoin issuers to drive demand for $1 trillion worth of US Treasuries—a direct result of backing their coins with liquid, low-risk assets.
Citi believes 2025 could be a breakthrough year for blockchain adoption. Think of it as blockchain’s “ChatGPT moment”—a sudden leap into the mainstream, especially in finance and public services.
This shift will depend heavily on regulation. The US has already taken a step by passing a bill that sets clearer rules for stablecoins, especially in how they’re backed and issued.
With better legal clarity, stablecoins could move from niche tools to everyday financial products.
Even as other countries test out digital currencies tied to their own national currencies, Citi expects around 90% of stablecoins to remain tied to the US dollar. That would keep the market heavily dollar-focused, especially in places where people want access to US dollars but can’t easily hold them in cash.
Even with all the growth, stablecoins aren’t without problems. Just in 2025, Citi counted more than 1,900 cases where stablecoins slipped from their $1 value—even if only for a short time. Asset-backed coins can wobble during sudden redemption waves. USDC, for example, faced a scare in 2023 when Silicon Valley Bank collapsed.
There are also concerns about technical risks, hacks, and scams, as well as the possibility that stablecoins could pull money away from traditional banks.
Citi’s report also looks at how governments are quietly testing blockchain for more than just payments. Use cases include:
- Tracking public spending
- Disbursing subsidies
- Managing public records
- Issuing digital bonds
- Handling humanitarian aid
- Building digital identity systems
Some countries are experimenting with on-chain solutions through central banks and development agencies. The US, for example, has begun testing blockchain-powered reporting tools under a new initiative called the Department of Government Efficiency (DOGE).
According to Citi, stablecoins could help align money movement with the pace of the internet and global trade. But for that to happen, a few things need to fall into place—clear rules, legal safeguards, and technical reliability.
Ryan Rugg, who leads Citi’s digital assets division, said the focus now is on bridging the gap between today’s financial tools and tomorrow’s faster, smarter systems.
“Stablecoins could serve as the key utility to achieve that. The first step is legislative and regulatory clarity,” she said.
Also Read: Bitcoin May Reach $2.4M by 2030, Says ARK Invest Report
