Huge Potential
At the center of this forecast are stablecoins like Tether’s USDT ($145B) and Circle’s USDC ($60B), which have rapidly grown in use for payments and remittances.
Source: U.S. Treasury, Tagus Capital
CitiBank expects the market to hit $1.6 trillion by 2030 in its base case, with potential to reach $3.7 trillion, assuming strong regulatory and institutional support.
U.S. Dollar Dominance
CitiBank projects stablecoin issuers could become major holders of U.S. Treasuries, up to $1.2 trillion by 2030, outpacing many foreign governments. The report expects 90% of stablecoins to remain dollar-pegged, reinforcing U.S. dollar dominance.
However, risks remain. Stablecoins de-pegged nearly 1,900 times in 2023, with events like the SVB collapse triggering liquidity shocks and broader market disruptions.
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