Citigroup Predicts Stablecoin Market to Surge 10x to $2 Trillion by 2030

Adoption Stablecoin stablecoin regulation

Crypto Journalist

Amin Ayan

Crypto Journalist

Amin Ayan

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Amin Ayan is a crypto journalist with over four years of experience in the industry. He has contributed to leading publications such as Cryptonews, Investing.com, 99Bitcoins, and 24/7 Wall St. He has...

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Last updated: 

April 24, 2025

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Citigroup has projected a dramatic rise in the stablecoin market, forecasting that its total market capitalization could soar from nearly $240 billion today to over $2 trillion by 2030.

The prediction, outlined in a report released on Thursday, says the growth in adoption would be driven by regulatory developments and increased interest from both financial institutions and the public sector.

According to the banking giant, stablecoin supply could reach $1.6 trillion by the end of the decade under its base-case scenario, while a more optimistic outlook places the figure at $3.7 trillion.

Citigroup Warns Stablecoin Market Could Stall at $500B Without Regulatory Progress

However, Citigroup also cautioned that if regulatory hurdles and integration challenges persist, the market could be limited to just $500 billion.

The report comes amid a shifting regulatory landscape in the United States, where President Trump’s pro-crypto administration has renewed momentum for stablecoin legislation.

Congress is currently reviewing proposals in both chambers that could pave the way for traditional financial giants, such as Bank of America, to issue U.S. dollar-backed stablecoins.

Citigroup noted that clear regulations could significantly boost demand for U.S. Treasuries, positioning stablecoin issuers among the largest holders of government debt by 2030.

Tether, the leading stablecoin issuer, already holds tens of billions in Treasuries, according to its latest reserves report.

While Citigroup acknowledged the transformative potential of stablecoins, it also warned they could disrupt traditional banking through “deposit substitution.”

Some banks are reportedly lobbying for stricter regulations to limit which entities can issue stablecoins, aiming to protect their role in the financial system as stablecoin adoption accelerates.

Active Stablecoin Wallets Surge Over 50% in One Year

As reported, the number of active stablecoin wallets has surged by over 50% in the past year, reflecting growing adoption and engagement within the digital asset ecosystem.

More specifically, active stablecoin addresses increased from 19.6 million in February 2024 to 30 million in February 2025, marking a 53% year-on-year growth.

Growing institutional adoption, expanding use in payments, and rising integration in decentralized finance (DeFi) has played a key role in the increase in active stablecoin wallets.

These factors have made stablecoins a fundamental component of the digital economy, offering liquidity, stability, and accessibility to users worldwide.

Beyond active addresses, the total stablecoin supply has also surged. In February 2024, the total supply stood at $138 billion, but by February 2025, it had climbed to $225 billion, reflecting a 63% year-on-year increase.

Recently, Federal Reserve Governor Christopher Waller has weighed in on stablecoins, arguing that U.S. dollar-pegged digital assets could strengthen the dollar’s global dominance.

Waller claimed that stablecoins already play an important role in the financial ecosystem.