Citi projects $1.9 trillion stablecoin boom by 2030

Core Insights - The stablecoin market is projected to grow significantly, with Citi forecasting issuance could reach $1.9 trillion by 2030, up from a previous estimate of $1.6 trillion, and potentially soar to $4 trillion in a bull case [2] - Stablecoins are increasingly utilized in various sectors, including crypto trading and e-commerce, with their market cap rising from $200 billion to $280 billion this year [3] - The growth of stablecoins may indicate a breakthrough in blockchain technology's adoption by large institutions, likening it to the early days of the dotcom boom [4] Market Projections - Citi's base case estimates stablecoin issuance at $1.9 trillion by 2030, supporting nearly $100 trillion in annual transactions, although this is small compared to the $5 to $10 trillion moved daily by leading banks [2][4] - The report highlights strong growth in 2025 and numerous project announcements from both crypto-native firms and traditional financial players [2] Adoption and Challenges - Despite the growth potential, many corporate firms remain cautious, showing curiosity rather than enthusiasm towards stablecoins, preferring "bank tokens" that offer safety and regulatory oversight [5] - Significant developments in the stablecoin space have occurred this year, with companies like PayPal expanding their offerings and retailers like Walmart and Amazon considering proprietary stablecoins [5]