Stablecoins Primed for Expansion, Projected to Hit $3.7 Trillion Market Cap by 2030

Stablecoins, initially limited to cryptocurrency exchanges, are now increasingly penetrating the broader economic landscape. Experts anticipate the market cap could surge to $3.7 trillion by 2030, propelled by their rising use in payment systems, corporate finance, and remittances. According to CoinPedia, a recent Citigroup (Citi) report indicates that stablecoins are steadily integrating into mainstream financial markets, driven by their expanding utility across various financial applications.

As of now, stablecoins have a total market valuation of $245.4 billion, with an average daily trading volume of $86.7 billion. Leading the market is Tether (USDT) with a market cap of $149.97 billion, followed by USD Coin (USDC) at $60.71 billion and TrueUSD (TUSD) at $7.72 billion. Remarkably, Tether alone boasts a daily trading volume of $76 billion, reinforcing its market dominance.

Citi Forecasts Stablecoins Could Achieve $1.6 Trillion to $3.7 Trillion Market Cap by 2030

In its “Future of Finance” report, Citi predicts that under conservative assumptions, stablecoins could hit a market cap of $1.6 trillion by 2030, and potentially reach $3.7 trillion in an optimistic scenario. Ronit Ghose, Citi’s Head of Global Future of Finance, highlighted the growing importance of stablecoins in numerous financial use cases, including cross-border payments, domestic remittances, corporate transactions, and settling tokenized assets.

“Stablecoins enable global users to efficiently hold US dollars and euros,” Ghose remarked, underscoring their increasing relevance in global finance.

Swift Adoption Among Payment Service Providers

Stablecoin adoption is accelerating, especially among payment service providers. Data from digital asset infrastructure provider Fireblocks reveals that payment firms make up 11% of its customer base but drive 16% of transaction volume. Trading activity in this sector has been growing by 30% per quarter on average. Over the last 90 days, Fireblocks processed $517 billion in USDT and USDC transactions, of which $82 billion was specifically for payment uses.

Regulation and CBDCs: A Dual Strategy Likely

The future of stablecoins will significantly depend on regulatory frameworks and their interplay with Central Bank Digital Currencies (CBDCs). Citi’s analysis suggests that national strategies might prioritize stablecoins, CBDCs, or a mix of both. Ghose noted, “Some countries may favor private stablecoins, while others could implement public CBDCs. A hybrid approach is also possible.”

Stablecoins as Financial Infrastructure, Not Replacement Currency

Rather than replacing fiat currencies, stablecoins are emerging as a critical financial infrastructure. Their growing integration into mainstream financial systems is evident through corporate and payment network usage. Increasing corporate demand, diverse use cases, and stronger connectivity with global payment systems bolster projections that stablecoins may surpass a $3 trillion market cap by 2030. These developments signal that stablecoins will be integral to future financial ecosystems.