Financial Giant Citi Predicts Stablecoin Market Cap Could Balloon to $4,000,000,000,000 in Just Five Years
The financial services giant Citi foresees explosive growth for the stablecoin market by the end of the decade.
Stablecoins are digital assets backed by high-quality short-term securities or cash-like assets that operate on blockchains.
In a new report , Citi says that in a best case scenario, the total market cap of stablecoins will surge to $4.0 trillion in the next five years.
“We are revising our stablecoin total issuance forecasts in this report to: $1.9 trillion base case (previously $1.6 trillion) and $4.0 trillion bull case ($3.7 trillion), due to the strong growth of the market in the past six months and the wide range of project announcements, in the U.S. and internationally.”
The bank says it is raising its original forecast in its April 2025 Citi GPS: Digital Dollars report because of the strong momentum in the ecosystem, which includes the integration by payment networks, launch of new layer-1 blockchains and regulatory clarity in key markets.
The report says the issuance volumes of the nascent asset grew by over 20% in the past six months and nearly 40% year-to-date.
During this period, US legislators passed the GENIUS Act to establish a regulatory framework for stablecoins. The European Union also began the enforcement of the Markets in Crypto-Assets Regulation (MiCAR) that covers electronic money tokens and Hong Kong introduced licensing rules for stablecoins.
“Summer 2025 has been dubbed ‘Stablecoin Summer’ by industry participants. New business activity around stablecoins, for solutions including commerce, payments and ‘real world’ applications, have heated up over the summer. We believe these could further power issuance and transaction volumes during 2026 and beyond.”
Generated Image: Midjourney
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Hyperliquid News Today: Bitget Wallet Simplifies DeFi Access for 80 Million Users Through HyperEVM Integration
- Bitget Wallet integrates HyperEVM, enabling 80M users to access Hyperliquid's $5B TVL DeFi ecosystem via cross-chain transfers and dApps. - Hyperliquid's high-performance DEX with onchain order books now supports smart contracts, linking institutional-grade liquidity to self-custody users. - The integration simplifies multi-chain activity through one-click network addition and aggregator routes like LiquidLaunch. - Bitget's 130+ blockchain support and $700M+ user protection fund reinforce its role as a b
CVC Shares Increase by 0.16% Following Banijay's $5.4 Billion Acquisition of Tipico Stake
- French media giant Banijay acquires 65% of German sports betting firm Tipico for €4.6B, creating Europe's largest online gaming operator with 6.5M players. - The €3B-funded deal will merge Tipico with Banijay's Betclic brand under Banijay Gaming, headquartered in Malta, with plans to increase ownership to 72% via call options. - CEO François Riahi highlighted strategic expansion into digital entertainment, projecting €100M annual cost synergies and regulatory compliance through Bet-at-Home stake sales. -
Arc's "Economic OS" Launches Public Testnet, Partnering with Over 100 Institutions
- Circle's Arc blockchain launches public testnet with 100+ institutions including Visa, HSBC, and BlackRock. - Designed as an "Economic OS," Arc enables instant settlements, privacy controls, and compliance-driven stablecoin ecosystems using USDC as gas token. - Partners like BNY Mellon and AWS test infrastructure supporting tokenized assets, AI-driven payments, and global market integration across four continents. - Circle emphasizes regulatory alignment (e.g., EU MiCA) and plans to transition Arc to com
Is it possible for AI stocks to bounce back, or will the regulatory advantages of crypto reshape the industry?
- AI sector faces 2025 challenges as BigBear.ai and C3.ai report revenue declines due to federal spending cuts and leadership changes. - C3.ai's stock drops 50% amid CEO departure and shareholder lawsuits over alleged business misrepresentations. - Crypto platform IPO Genie ($IPO) emerges as compliance-focused alternative with STO model, CertiK audits, and Fireblocks custody. - $IPO targets $100M AUM by 2026, offering institutional-grade private market access to retail investors via AI-powered deal curatio
Trending news
MoreCrypto prices
More
