The stablecoin sector is poised for rapid growth and accelerated adoption, with a projected market cap of over $1.6 trillion by 2030, according to a report from Citi Group. This growth is fueled by increasing regulatory clarity, institutional interest, and global demand for US dollar-denominated digital assets. Citi compares this phase of stablecoin growth to the early stages of artificial intelligence tool adoption, citing 2025 as the turning point where stablecoins become more integrated with the global economic system.
Regulatory progress in the US and Europe is enabling stablecoins to expand beyond their original role in crypto trading and DeFi. New legislation in the US aims to establish a legal framework for stablecoin issuance and reserves, while the EU’s MiCA regulation sets standards across the bloc. This regulatory momentum, combined with demand from emerging markets and financial institutions, is driving the integration of stablecoins into existing financial systems for payments, settlements, and liquidity management.
While crypto trading remains the largest use case for stablecoins, responsible for up to 95% of current volumes, Citi projects growth in areas such as B2B cross-border payments, consumer remittances, and institutional capital markets activity. Emerging markets like Argentina, Nigeria, and Turkey are also driving retail adoption of stablecoins as a hedge against inflation and currency volatility. Major asset managers and fintech firms are piloting stablecoin-based settlements for funds and treasury operations, reflecting confidence in the infrastructure and regulatory landscape.
Citi compares the potential trajectory of stablecoins to the card payment industry, suggesting that dominant issuers may emerge, but national players and public-private models are also expected to proliferate. The report emphasizes the importance of trust, reserve transparency, and user experience in determining which stablecoins achieve mainstream penetration. Regulatory clarity has removed barriers for both incumbents and challengers in the stablecoin sector, enabling them to build services on more predictable legal foundations.
In conclusion, the stablecoin sector is experiencing accelerated adoption and growth, with a projected market cap of over $1.6 trillion by 2030. Regulatory progress in the US and Europe, along with demand from emerging markets and financial institutions, is driving the integration of stablecoins into broader financial and public sector use cases. While crypto trading remains the largest use case, stablecoins are expanding into areas such as cross-border payments, remittances, and institutional capital markets activity. The future of stablecoins is likened to the card payment industry, with dominant issuers expected to emerge alongside national players and public-private models. Regulatory clarity has removed barriers for the sector, enabling stablecoins to achieve mainstream penetration and further growth in the years to come.
