Citi’s Bullish Stablecoin Forecast
Citi predicts a massive $3.7 trillion explosion in the stablecoin market by 2030. This bullish forecast hinges on several factors, including tokenized deposits, which could drive significant growth.
Tokenized Deposits Driving Growth
Citi analysts believe tokenized deposits, representing digital versions of commercial bank money, will play a crucial role in this expansion. They argue these deposits could offer advantages like faster transaction speeds and programmability compared to traditional bank deposits. This shift could lead to a $3 trillion stablecoin market based on tokenized deposits alone.
Wholesale Stablecoins and Other Factors
Beyond tokenized deposits, Citi also sees potential in wholesale stablecoins, which are primarily used by financial institutions for large transactions. They project a $700 billion market for these wholesale stablecoins. Other factors contributing to the optimistic outlook include increasing adoption of stablecoins in payments and decentralized finance (DeFi).
Potential Challenges and Regulatory Scrutiny
While Citi is optimistic, the report acknowledges potential challenges. Regulatory scrutiny remains a significant hurdle, with governments worldwide grappling with how to regulate stablecoins. This uncertainty could impact the speed and extent of market growth. Despite these challenges, Citi remains confident in the long-term potential of stablecoins to revolutionize the financial landscape.
Tether’s XAUT Gold Backing Tops 7.7 Tons
Mastercard Enables Stablecoin Payments
