Citibank Report Forecasts $4 Trillion Stablecoins by 2030

People now recognize stablecoins as a solid payment system, not just a tool for crypto traders.

Citi’s Forecast for Stablecoins

Citibank lays out three scenarios for Stablecoins: bear, base, and bull. In the base scenario, Citi forecasts that these digital assets will reach approximately $1.9 trillion in circulation by 2030. In the bull scenario, they could reach $4 trillion. These numbers are higher than earlier predictions. The increase comes from strong growth in 2025, when issuance reached about $280 billion.

So how did Citi come up with these numbers? They built models around three main demand channels:

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  Crypto‑native activity (trading, DeFi, etc.)
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  E‑commerce and digital firms are adopting them for payments.
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  In most markets where stablecoins are necessary, the offshore demand for USD‑pegged coins is high.

They considered transferring money out of banks and into on‑chain versions. The outcome is a mix of results related to the speed of adoption, regulation, and issuer behaviour.

Citi makes it clear that this prediction does not mean people will stop using banks immediately. Instead, stablecoins could become major global rails if the necessary infrastructure and policies are in place.

Why 2025 is a Turning Point?

Citi increased its forecast because 2025 was a year of activity. Issuers launched new products, institutions made announcements, and adoption accelerated. Merchants and corporations also began testing stablecoins for payments and embedded finance.

Additionally, offshore demand for dollar liquidity, particularly in countries with weak currencies, began to increase. For many people, these tokens are the easiest way to hold digital dollars. Experts expect this trend to continue growing.

1) Velocity

Issuance alone doesn’t tell the whole story. Velocity is the key factor here; it indicates the number of people using stablecoins. According to Citi, issuance × velocity = total transaction volume.

Here’s the striking part: at a velocity of 50×, Citi’s base case of $1.9 trillion could support $100 trillion in annual transactions by 2030. The bull case of $4 trillion could power nearly $200 trillion in activity.

Why is it so high? They are programmable and always active. The same token can settle dozens of payments, trades, or microtransactions per day. Think of them as digital cash that is always active.

But Citi also warns that this depends on low friction. High velocity needs rapid issuance, expeditious ramps, minimal charges, and broad application. When redemption is slow (takes days) or KYC is clunky, speed is reduced. At 10× the velocity, volumes shrink dramatically. Velocity is where the real economic impact lies, and it depends on having smooth and efficient infrastructure.

2) Coexistence: Stablecoins Won’t Be Alone

Citi doesn’t think these digital assets will completely replace money. They expect stablecoins, bank‑issued tokens, and CBDCs to coexist.

Here’s why:

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  They are the best choice for global use in markets, payments, and Web3.
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  Bank tokens serve corporates in treasuries and settlements, backed by regulated safeguards.
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  CBDCs help governments with payments and control, but limit cross‑border use.

Citi predicts that bank tokens could surpass stablecoins in transaction volumes by 2030. These tokens will still dominate in global and programmable contexts. The future, according to Citi, is plural. Different types of digital money will serve different niches, and interoperability will be key.

Regulation and Infrastructure

No matter how big the demand, these tokens can’t scale without rules and rails. Citibank said adoption depends on regulation and infrastructure.

1) Key Regulatory Priorities

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  Issuer standards: Strong reserve rules and audits.
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  KYC/AML: Compliance frameworks that function across countries and exchanges.
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  Cross‑border coordination: Global use becomes fragmented unless harmonized.

Citi points to Hong Kong as an example of a country with a stablecoin licensing system. Proactive rules there help streamline stablecoin growth.

2) Infrastructure Bottlenecks

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  On/off ramps: Fast and reliable mint and redemption paths.
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  Interoperability: Messaging standards and bridges for cross‑ledger settlement.
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  Custody: There are requirements on the holding and investment of reserves.

The balance is tricky. Complicated rules send people away, while loose ones risk turmoil. Citi believes that a balance that is risk‑conscious, trust‑building, and yet does not choke innovation is the way forward.

3) Emerging Markets

The most significant impact of stablecoins may be in emerging markets. These tokens are a game‑changer in some countries. In those places, cross‑border payments are cumbersome and expensive. The following are some of the high‑impact use cases:

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  Small business payments: SMBs will not have to deal with lengthy settlement periods and excessive FX charges.
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  Remittances: Migrants can make instant and low‑cost remittances to their families and loved ones.
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  Merchant settlement: Marketplaces can pay sellers immediately, thereby eliminating the risk of cash‑flow issues.

But there are hurdles. Many of these regions lack regulated on‑ and off‑ramps. FX volatility and local regulatory hurdles also slow adoption. Nevertheless, the potential for social impact is immense. They boost supply chain finance, support SME cash flow, and cut remittance costs.

Citi urges regulators in emerging markets to back local ramps and test sandboxes. They should also invest in digital identity systems to ease onboarding.

What To Watch Next

Citi highlights a few key signals:

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  Issuance levels – can these digital assets reach $1.9 trillion to $4 trillion by 2030?
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  Velocity – do they hit the 50× turnover needed for $100 T+ in annual flows?
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  Regulation – do the countries establish transparent and balanced systems?
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  Infrastructure – are on/off ramps and interoperability enough enhanced?

The winners will likely be:

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  Markets that have high frictions (emerging economies)
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  Markets that incorporate Stablecoins on their platforms.
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  Organizations that understand custody, compliance, and trust.

Conclusion

Stablecoins form the basis of the digital currency. Citibank forecasts $4 trillion in stablecoin payments, finance, and trade by 2030, showing immense potential. The road ahead will never be clear of obstacles, and they will remain, with their effects continuing to intensify.