Stablecoin Boom Coming, Citi Sees $3.7T Potential Growth

Citi projects stablecoins will be widely used for payments, remittances, and tokenized assets by 2030. Payment firms are rapidly increasing their stablecoin transaction volumes quarter by quarter. Big predictions come from Citi. In their latest report, they estimate that the stablecoin market cap could reach $3.7 trillion by 2030. If that figure is achieved, stablecoins will have moved far beyond their traditional role as a tool for crypto traders. Now, they are starting to infiltrate the realm of cross-border payments, remittances, and even settlement of tokenized assets. Stablecoin Dominance Rises as Dollar-Backed Tokens Lead the Way Citi calls stablecoins the “digital cash” of the future. They predict that the majority of global transactions will still use US dollar-based stablecoins, with up to 90% of the stablecoin supply likely to still be denominated in dollars by 2030. At the same time, payment companies are starting to get in on the action. Although only 11% of Fireblocks’ clients come from the payments industry, they account for 16 percent of stablecoin transaction volume. And according to data, that number continues to grow by more than 30% every quarter. When Big Tech, Banks, and Politics Come Into Play On the other hand, tech giants like Meta are also looking back at stablecoins. After the Diem project was buried due to pressure from regulators, Meta is now exploring a new option: introducing stablecoins like USDC and USDT to Facebook and WhatsApp. CNF reports that Meta is in discussions with several crypto infrastructure companies to support payments to content creators on their platforms. Imagine if all influencers in Indonesia could be paid directly using stablecoins via WhatsApp—the process could be faster, without the hassle of currency conversion. However, not everyone is enthusiastic. A major bill to regulate stablecoins failed to pass the US Senate on May 8. Although initially supported across party lines, several Democratic senators withdrew their support due to conflict of interest issues. President Donald Trump is said to have been involved in the USD1 stablecoin project through his company World Liberty Financial. Senator Elizabeth Warren even said that this bill could open the door to political corruption. Furthermore, Deutsche Bank has released an optimistic report stating that stablecoins will enter the mainstream this year. They assessed that the progress of regulation in the US, despite being hampered in the Senate, still paves the way for wider adoption. Banks are starting to see stablecoins not as a threat, but as an opportunity. Even Anchorage Digital, a federally licensed crypto bank, announced its acquisition of Mountain Protocol, the issuer of the yield-bearing stablecoin USDM. Its CEO, Nathan McCauley, said that Mountain’s technology and team will be integrated immediately, subject to regulatory approvals. Not only that, but this move also confirms that stablecoins aren’t just a startup thing—big banks are starting to take a serious look. Source: https://www.crypto-news-flash.com/stablecoin-boom-coming-citi-sees-3-7t-potential-growth/?utm_source=rss&utm_medium=rss&utm_campaign=stablecoin-boom-coming-citi-sees-3-7t-potential-growth