Citi: By 2030, Tokenized Bank Deposits May Surpass Stablecoins

Citibank has updated its outlook for the stablecoin sector, now anticipating that issuance could climb to $1.9 trillion in a standard scenario and as high as $4 trillion in a bullish scenario by 2030 Stablecoin Market Could Reach $4 Trillion by 2030, Citi Says [ 1 ]. These figures mark an increase from earlier projections of $1.6 trillion and $3.7 trillion, respectively, driven by strong growth expected in 2025 and heightened participation from both crypto-focused companies and established financial institutions Citi projects $1.9 trillion stablecoin boom by 2030 [ 2 ]. The amount of stablecoins in circulation has already grown from about $200 billion at the beginning of 2025 to $280 billion, highlighting the rapid pace of adoption Stablecoin Market Could Reach $4 Trillion by 2030, Citi Says [ 1 ].

The report describes stablecoins as a "catalyst for blockchain’s ChatGPT moment" in terms of institutional uptake, likening the current phase to the early days of the internet Citi projects $1.9 trillion stablecoin boom by 2030 [ 2 ]. Should stablecoins reach transaction speeds similar to traditional currencies, they could enable up to $100 trillion in yearly transactions in the base scenario, and up to $200 trillion in the bullish scenario Stablecoin Market Could Reach $4 Trillion by 2030, Citi Says [ 1 ]. This expansion is credited to blockchain’s transformative impact on financial infrastructure, with stablecoins, bank-issued tokens, and central bank digital currencies (CBDCs) expected to serve different roles within the ecosystem Stablecoin Market Could Reach $4 Trillion by 2030, Citi Says [ 1 ].

However, the analysis cautions that stablecoins may

become the dominant force in all on-chain financial activities. Tokenized bank deposits, which provide regulatory protections and instant settlement, could overtake stablecoins in transaction volume by 2030 Stablecoin Market Could Reach $4 Trillion by 2030, Citi Says [ 1 ]. The shift is being propelled by corporate priorities for compliance and integrated security, with predicting that even a modest move of traditional banking infrastructure onto blockchain could push bank token transaction values above $100 trillion by the end of the decade Stablecoin Market Could Reach $4 Trillion by 2030, Citi Says [ 1 ].

The U.S. dollar continues to be the backbone of blockchain-based finance, as most stablecoin transactions are denominated in dollars. This has increased demand for U.S. Treasuries, though regions such as China Hong Kong and the UAE are also emerging as key locations for stablecoin innovation Stablecoin Market Could Reach $4 Trillion by 2030, Citi Says [ 1 ]. Citi views the growth of stablecoins not as a disruption to traditional banks, but as part of a larger transformation of the financial landscape Stablecoin Market Could Reach $4 Trillion by 2030, Citi Says [ 1 ].

Regulatory changes and institutional involvement will play a decisive role in shaping the market’s future. While stablecoins are under scrutiny regarding their reserves and regulatory oversight, they are increasingly being used for cross-border payments and online commerce. Major retailers such as Walmart and Amazon are considering launching their own stablecoins, and regulators in the U.S. and other countries are working toward clearer guidelines Citi projects $1.9 trillion stablecoin boom by 2030 [ 2 ]. Despite these developments, Citi stresses that stablecoins are not a "cure-all" for every financial issue, pointing out that many domestic payment systems already provide fast and low-cost solutions in various markets Citi projects $1.9 trillion stablecoin boom by 2030 [ 2 ].