Citigroup: Expected stablecoin supply to reach $3.7 trillion by 2030

According to The Block, Citigroup's report on Thursday hinted that blockchain technology may usher in a "ChatGPT moment" this year, driven by stablecoin applications. The bank predicts that by the end of this decade, the total market value of stablecoins may surge more than tenfold from the current approximately $240 billion to over $2 trillion. Under the baseline scenario, the circulation of stablecoins may reach $1.6 trillion by 2030, while under the optimistic scenario, it may reach $3.7 trillion. The report emphasizes that the adoption of stablecoins by the financial and public sectors under regulatory changes may drive historic changes in the cryptocurrency market. However, if the adoption and integration of stablecoins encounter obstacles, their market value may only reach $500 billion. Citigroup also stated that if the regulatory framework for stablecoins in the United States is established, it may stimulate new demand for US bonds, and by 2030, stablecoin issuers may become one of the main holders of US bonds. Currently, Tether, the world's largest stablecoin issuer, holds billions of dollars in US Treasury bonds. In addition, stablecoins may threaten the traditional banking ecosystem through deposit substitution, and some banks are lobbying lawmakers to restrict the types of issuers of US dollar linked tokens.