The stablecoin market is expanding faster than expected. According to Citibank, total issuance grew from around $200 billion at the beginning of 2025 to $280 billion by September.

New forecast: $1.9 trillion baseline, $4 trillion in bull case

Citibank projects that the value of stablecoins in circulation could reach $1.9 trillion by 2030 in its baseline scenario. Under a more favorable bull case, the market could surge to $4 trillion — an upgrade from previous estimates of $1.6 trillion and $3.7 trillion.

If stablecoins circulate as quickly as fiat currencies, they could facilitate up to $100 trillion in annual transactions by 2030, potentially doubling in the bull case.

Citibank compares this development to a “ChatGPT moment” for Blockchain — the point at which the technology moves into mainstream use and becomes integral for digital-native companies.

Bank tokens could overtake stablecoins

The report highlights that stablecoins may not be the ultimate leader in on-chain finance. Bank tokens — such as tokenized deposits, where funds are held in a bank and issued digitally on the Blockchain — may prove even more powerful.

These tokens could surpass stablecoins thanks to corporate demand for regulated solutions, instant settlement, and built-in compliance. Even a partial migration of banking infrastructure to the Blockchain could push transaction volumes beyond $100 trillion by the end of the decade.

Dollar dominance and new innovation hubs

The US dollar is expected to remain dominant, as most on-chain money is dollar-denominated, reinforcing demand for US Treasuries. At the same time, new hubs such as Hong Kong and the United Arab Emirates are emerging as centers of innovation.

Not a battle, but new infrastructure

According to Citibank, this is not about stablecoins replacing banks. Instead, the financial system is undergoing a transformation where stablecoins, bank tokens, and CBDCs will coexist, each serving distinct roles.

Sources:

https://www.citigroup.com/global/insights/digital-dollars

https://www.coindesk.com/business/2025/09/25/stablecoin-market-could-reach-usd4-trillion-by-2030-citi-says-in-revised-forecast