The changing regulatory landscape being driven by the Trump administration could see 2025 being blockchain’s ‘ChatGPT’ moment and also drive huge growth in stablecoins, according to research from Citi.
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Citi predicts that the total outstanding supply of stablecoins could grow from $230 billion to anything from $1.6 trillion to $3.7 trillion by 2030.
“The main catalyst for their greater acceptance may be regulatory clarity in the US, which could enable greater integration of stablecoins specifically, and blockchain more widely, into the existing financial system,” says Citi.
The report predicts that around 90% of the stablecoin supply will continue to be US dollar denominated, with other countries focussing on CBDCs, a path Trump has said American will not go down.
A US regulatory framework for stablecoins could also drive net new demand for US Treasuries, making stablecoin issuers among the biggest holders by 2030.
Citi concedes that stablecoins do pose some threat to traditional banking ecosystems via deposit substitution but says they are likely to offer banks opportunities for new services as issuers or in more indirect roles as part of the pay-in/pay-out ecosystem or in liquidity provision.
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