Citigroup has unveiled a bold projection for the future of stablecoins, predicting that their issuance could reach a baseline of $1.9 trillion by 2030, with a potential surge to $4 trillion in a bullish market scenario. Released on September 25, 2025, the report highlights the transformative potential of stablecoins, bank tokens, and central bank digital currencies (CBDCs) in redefining global financial infrastructure. With annual transaction volumes potentially reaching $100 trillion to $200 trillion if stablecoins achieve fiat-like circulation velocity, Citi underscores the growing dominance of digital assets and the pivotal role of the U.S. dollar in on-chain finance, while emerging hubs like Hong Kong and the United Arab Emirates drive innovation.
Explosive Growth in Stablecoin Issuance
Citi’s revised forecast, up from its April 2025 estimate of $1.6 trillion, reflects the accelerating adoption of stablecoins, driven by a 40% increase in issuance volume this year, from $224 billion to $292 billion. The report attributes this growth to regulatory clarity, such as the U.S. Genius Act, and increased integration of stablecoin payment networks by both crypto-native firms and traditional financial institutions. “Stablecoins are a catalyst for blockchain’s ChatGPT moment in institutional adoption,” said Ronit Ghose, global head of future of finance at Citi Institute, emphasizing their role in revolutionizing commerce and cross-border transactions.
The report projects that stablecoins could support annual transaction volumes of $100 trillion in the base case and up to $200 trillion in a bullish scenario, assuming circulation speeds akin to traditional fiat currencies. This growth is fueled by stablecoins’ expanding use cases, including crypto trading, e-commerce, and offshore dollar access, with the market already processing $1 trillion monthly. Despite this potential, Citi notes that these volumes remain modest compared to the $5 trillion to $10 trillion daily transactions handled by leading banks, highlighting the opportunity for further integration.
Bank Tokens to Outpace Stablecoins
Citi predicts that bank tokens, such as tokenized deposits and deposit tokens, will likely surpass stablecoins in transaction volume by 2030, potentially exceeding $100 trillion annually. These instruments, issued by regulated financial institutions, offer seamless integration with existing treasury systems and compliance with stringent regulatory frameworks, making them attractive for corporate adoption. David Cunningham, head of strategy and partnerships for digital assets at Citi Services, noted, “Bank tokens provide familiar regulatory frameworks and real-time settlement, addressing corporate demand for efficiency and compliance.”
The U.S. dollar’s dominance in on-chain finance remains unchallenged, with Citi estimating that it drives demand for U.S. Treasuries and supports global financial stability. However, regions like Hong Kong and the UAE are emerging as innovation hubs, fostering blockchain adoption and testing grounds for tokenized assets and CBDCs. This regional dynamism complements the U.S.’s leadership, creating a global ecosystem where stablecoins, bank tokens, and CBDCs coexist to enhance financial efficiency.
Coexistence of Digital Currencies
Citi’s report envisions a future where stablecoins, bank tokens, and CBDCs work in tandem to reshape financial infrastructure, rather than replacing traditional systems. “We don’t believe crypto will burn down the existing system,” the report states. “Rather, it is helping us reimagine it.” This coexistence is driven by the complementary strengths of each asset class: stablecoins offer speed and accessibility, bank tokens provide regulatory certainty, and CBDCs ensure sovereign control and stability.
The report highlights the broader cryptocurrency market’s growth, with over $6 trillion in on-chain real-world assets and $241 million in recent Bitcoin ETF inflows signaling robust institutional interest. Stablecoin adoption is further supported by innovations like Anchorage Digital’s USAT, a U.S.-regulated digital dollar, and Divine’s blockchain-based lending, which leverage stablecoins to enhance financial inclusion. These developments align with Citi’s projection of a transformative shift in financial systems, driven by blockchain’s scalability and transparency.
Challenges and Opportunities Ahead
Despite the optimistic outlook, Citi cautions that institutional adoption of stablecoins remains low, with Visa’s Catherine Gu estimating it at just 0.5 on a scale of 0 to 10. Challenges include regulatory hurdles, corporate hesitancy, and the need for robust infrastructure to support trillion-dollar transaction volumes. However, recent regulatory advancements, such as the Genius Act and the CFTC’s permissive stance on prediction markets, provide a supportive environment for growth.
The U.S. economy’s robust 3.8% GDP growth in Q2 2025 and Federal Reserve rate cuts create a favorable backdrop for digital asset adoption, with Bitcoin steady at $111,700 and Ethereum navigating volatility below $4,100. As stablecoins integrate with AI-driven analytics and blockchain-based lending, they could unlock new efficiencies, particularly in cross-border payments and tokenized asset markets.
A Transformative Financial Future
Citi’s projection of $1.9 trillion to $4 trillion in stablecoin issuance by 2030 marks a pivotal moment for digital finance, signaling the mainstream integration of blockchain technologies. With bank tokens poised to lead in transaction volume and CBDCs enhancing sovereign oversight, the financial landscape is undergoing a profound transformation. As innovation hubs like Hong Kong and the UAE drive experimentation and the U.S. dollar maintains its dominance, stablecoins are set to redefine global commerce, fostering a more efficient, transparent, and inclusive financial ecosystem.
