Stablecoin Market Expected to Reach $1.6 Trillion by 2030
The stablecoin market is projected to grow significantly, potentially surpassing the entire crypto trading ecosystem, as regulatory support fosters mainstream adoption. Key points include:
- Current market size is approximately $240 billion, driven by Tether's USDT and Circle's USDC.
- Citi predicts a growth to $1.6 trillion by 2030 under a base-case scenario and up to $3.7 trillion in a bullish scenario.
- Stablecoins are expanding beyond crypto trading into payments and remittances, with potential for use in term deposits and retail money market funds.
- Payment companies are increasingly utilizing stablecoins for cross-border transfers and merchant settlements, representing 16% of overall stablecoin transactions.
- Fireblocks reported $517 billion in combined USDT and USDC volume over 90 days, with payment companies generating $82 billion, reflecting a 38.2% quarter-over-quarter increase.
- Citi raises questions about the future of stablecoins versus central bank digital currencies (CBDCs) in various regions.
Overall, the integration of stablecoins into financial systems continues to evolve, suggesting a significant shift in how digital assets will be utilized globally.