According to BlockBeats news on May 12, citing CoinDesk, Citigroup predicts that as favorable regulations drive fixed-value tokens into the mainstream economy, the stablecoin market may soon surpass the entire crypto trading ecosystem that nurtured it.
Stablecoins are not just playing the role of 'tokenized cash' in the crypto trading community; these digital tokens, primarily pegged to the US dollar, have begun to expand into areas such as payments and remittances.
Citigroup's recent report from its Future Finance Think Tank indicates that in the next five years, stablecoins may replace some of the foreign and domestic currency reserves in the United States, and they will also become part of banks' short-term liquidity.
The report also states that if yield-bearing stablecoins can be launched, they are expected to play a role in time deposits and retail money market funds.
