Citigroup: Stablecoin market could grow to as much as $3.7 trillion by 2030

Global investment bank Citigroup predicts exponential growth in the stablecoin market and highlights the potential impact that blockchain technology will have on the traditional financial system.
According to a report by Citigroup on the 24th (local time), the stablecoin market, currently valued at approximately $240 billion, is expected to reach $1.6 trillion by 2030 under the base scenario.
"In an optimistic scenario, it could grow to $3.7 trillion, while in an optimistic scenario, it could grow to $3.0 trillion," the report said. However, if hiring and integration challenges continue, growth could remain at the $500 billion level.
He added that "if the use of stablecoins becomes widespread across the financial and public sectors and the institutional foundations are in place, the cryptocurrency market will undergo unprecedented changes."
The report was released at a time when the U.S. Congress is accelerating preparations for stablecoin regulations after the inauguration of the Donald Trump administration, which has teased the U.S. with cryptocurrency-friendly policies.
Currently, the House and Senate are pursuing separate legislation to create a clear legal framework for cryptocurrencies pegged to the US dollar.
Citigroup also said, "If stablecoin regulation is established, it will create new demand for U.S. Treasury securities.
He also noted that stablecoin issuers could emerge as major holders of U.S. government bonds by 2030.
The company, Tether, was found to hold billions of dollars in U.S. Treasury securities in a recent reserve filing.
But Citigroup believes that behind this growth potential lies tradition.
He also warned that there is a threat to the global banking system. Some financial institutions have been hesitant to issue stablecoins because the deposit substitution effect could lead to capital outflows from commercial banks.
They are lobbying for restrictive legislation that would only allow certain institutions to do so. Citigroup's report is a critical piece of the blockchain-based financial industry, with stablecoins at the core.
This suggests that the cryptocurrency infrastructure has matured to the point where it can have a structural impact on the existing financial order, and indicates that this could be a major turning point for the cryptocurrency industry as a whole.