Stablecoin supply may reach $3.7 trillion: Industry enters explosion period

According to the latest report from Citibank, the global supply of stablecoins is expected to reach $3.7 trillion by 2030. This means that stablecoins will gradually evolve from being mere aids in crypto trading to becoming an important infrastructure in the global financial system.

Citibank points out that the key drivers of stablecoin growth include:

  • Regulatory Framework Gradually Improving: The US passed a stablecoin bill in March 2025, clarifying issuance and reserve standards; the EU has passed the MiCA regulation, establishing a unified regulatory system.

  • Institutional Investors Entering: An increasing number of traditional financial institutions are incorporating stablecoins into payment and settlement systems.

  • Increased Demand for Dollar Digital Assets: The global demand against local currency depreciation is driving the popularity of stablecoins, especially dollar stablecoins.

Diverse Application Expansion: Stablecoins serve more than just crypto trading

The Citibank report indicates that the application scenarios of stablecoins have expanded from cryptocurrency trading to more areas:

  • Mainstay of Crypto Trading: Currently, 90%-95% of stablecoin trading volume still comes from crypto asset exchanges.

  • B2B Enterprise Payments: When doing business in low- to middle-income countries, traditional banks face low efficiency and other unpredictable situations. Given that global B2B fund flows reach hundreds of trillions, even a small portion of funds shifting to stablecoins could represent 20-25% of the total market size of stablecoins in the long run.

  • Consumer Remittances: The global $1 trillion remittance market is being reshaped by stablecoins.

  • Institutional Trading and Capital Market Settlement: Some banks and financial institutions are exploring the use of stablecoins for settling tokenized securities transactions.

  • Interbank Liquidity Management: Although the share is still small, the potential of stablecoins in internal settlement and liquidity optimization should not be underestimated.

It is evident that stablecoins are rapidly transforming from 'crypto circle assets' into fundamental financial tools in the real world.

Significant Payment Advantages: Emerging markets benefit first

Besides the mention in the Citibank report, stablecoins possess strong network effects and self-reinforcing cycles similar to the card payment industry and cross-border banking. The Insights4vc report also points out that one of the most transformative applications of stablecoins in the real world is international remittances. With characteristics like speed, low cost, and 24/7 availability, they show strong growth momentum in regions where global instant payments have not yet proliferated.

Specific Performance:

  • In countries like Argentina, Turkey, Nigeria, Kenya, and Venezuela, stablecoins have become important means for daily payments and asset preservation; (from Citibank report)

  • In the field of cross-border remittances, transferring through stablecoins costs about 60% less than traditional channels, with arrival times reduced from days to minutes or even seconds; (from Insights4vc report)

  • Mexico Case: In 2023, Mexico has become the world's largest recipient of crypto dollar remittances, with annual receipts reaching $63.3 billion (from Insights4vc report)

Change in Yield Model: Zero-yield stablecoins face the risk of being phased out

With institutions like BlackRock (BUIDL) and Franklin Templeton (BENJI) launching tokenized money market funds (MMF), users can exchange USDC in crypto wallets for assets yielding up to 5% while maintaining a dollar peg. This puts pressure on traditional 'zero-yield' stablecoins.

Circle (the issuer of USDC) has started offering rewards to users through the Coinbase platform, and Tether (USDT) is also considering feedback mechanisms to address potential user attrition.

Meanwhile, new players like PayPal (PYUSD) and Agora (AUSD) are continually entering the market, often with yield incentives, further intensifying market competition. If traditional stablecoin issuers cannot provide corresponding incentives, they may lose competitive advantages in the future market.

(from Insights4vc report)

The Future of Stablecoins: From Niche Market to Global Infrastructure

In addition to Citibank's report predicting that the future supply of stablecoins may reach trillions, the Insights4vc report predicts that by 2030, stablecoins will occupy a core position in cross-border payments, corporate settlements, and digital asset transactions, with market value expected to grow from hundreds of billions to trillions.

At the same time, as global regulatory standards improve, the stablecoin industry will transition from 'wild growth' to controlled growth, becoming a key force for financial innovation and inclusion.

In Conclusion

Stablecoins are moving towards the mainstream financial system with an unstoppable trend. They are reshaping the global payment landscape, changing cross-border settlement paths, enhancing asset liquidity efficiency, and becoming an important cornerstone of the global value internet.

In the next five years, stablecoins will not only be payment tools but will also become an important driving force in the evolution of the global financial system.