Citi believes that issuers of stablecoins will be the main buyers of American debt and that the market value of these currencies could grow more than 15 times.
Citigroup report on stablecoins. Source: Citi/Reproduction.
Citigroup, a multinational investment bank, published a lengthy report on stablecoins this week. Notably, analysts point out that the sector could reach R$ 3.7 trillion by 2030.
Currently, the market value of stablecoins is estimated at $237 billion. Tether (USDT) and USD Coin (USDC) dominate the industry, with $146 billion and $62 billion, respectively.
The popularization of these currencies could also increase the adoption of other cryptocurrencies, including Bitcoin. After all, this brings the public closer to these investments.
Citigroup believes that issuers of stablecoins will dominate the U.S. Treasury securities market.
The first point that stands out in Citigroup's report is the purchase of American debt by issuers of stablecoins. Currently, Tether is already the 7th largest buyer, surpassing countries like Brazil and Canada.
However, the report makes an even bolder projection by stating that these companies will reach 1st position within 5 years.
"Creating a regulatory framework in the U.S. for stablecoins would support demand for risk-free dollar-denominated assets, both inside and outside the United States."
"The issuers of stablecoins will have to buy U.S. Treasury securities, or comparable low-risk assets, as a way to provide a secure guarantee for each stablecoin issued," added Citigroup.
Citigroup predicts that issuers of stablecoins will become the largest buyers of American debt by 2030. Source: Reproduction.
Currently, the ranking is led by Japan and China, with $1 trillion and $761 billion, respectively.
Stablecoins could grow more than 15 times, says Citi
For this to be possible, Citigroup also points out that stablecoins could experience growth of more than 15 times in the next 5 years, rising from the current $237 billion to $3.7 trillion.
In the most pessimistic scenario, they double in value, reaching $500 billion. In the baseline scenario, they would reach $1.7 trillion.
Citigroup predicts significant growth for the stablecoin sector. Source: Reproduction.
Among the cited reasons are the preference for a digital currency inside and outside the U.S., the shift of deposits in banks to stablecoins, organic growth of the cryptocurrency market, and others.
In addition to giants Tether and Circle, issuers of USDT and USDC, respectively, the industry has seen the arrival of more traditional players, including PayPal and more recently World Liberty Financial, linked to Donald Trump.
Banks like Bank of America have also shown interest in launching their own stablecoins.
Given that the U.S. does not intend to create a digital dollar, leaving this function to private companies, it is natural to believe that Citi's projections could be fulfilled.