The Giant Citigroup in the American Banking has shared a very bullish prediction of the Stablecoin Market in the latest market perspective report. Besides this interesting vision, Citigroup also highlighted potential obstacles and road barriers for these FIAT-PEG.
American organizational framework to stimulate Stablecoin
In the market report Absolute Last week, Citigroup supports the Stablecoin market to see the growth growth of at least 7X over the next five years. The multinational investment bank has linked this bullish position to clear intentions of the current US administration to formulate policies that support the growth of the digital asset industry.
It is worth noting, in January 2025, US President Donald Trump ordered the creation of an encoding working group to create a federal regulatory framework in line with the demand for emerging industry.
According to Citigroup, the creation of this organizational framework, in addition to increasing the adoption of digital assets by current financial institutions, is expected to increase the demand for stablecoins. Data from Devilia He appears The value of the Stablecoin market has grown by 30x in recent years as the total encryption market has increased by more than 1,400 % at the same time.
While Citigroup notes that it is difficult to make future predictions, the current scenario and previous shows indicate that Stablecoin Supply may rise by $ 1.6 trillion by 2030 at the case of the 2030 base. In the upscale scenario, the investment bank expects that the Stablecoin Market may win $ 3.7 trillion, while the declining issue will only support the market growth by $ 0.5 trillion.
Interestingly, Citigroup also explains that a regulatory framework for the United States will enhance the demand for risk -free assets inside and outside the United States. This is because Stablecoin exporters are required to maintain American years or other low -risk assets as a guarantee for all traded stablecoin.
In the basic status scenario, the American bank expects the high demand in Stablecoin will buy US Treasury bonds worth $ 1 trillion.
What are the challenges facing Stablecoins?
Although he is largely optimistic about the potential for growth in Stablecoins, Citigroup has also participated in some possible challenges that these virtual assets may face in adoption.
Stablecoin represents a virtual encoding currency with a fixed value that is linked to the existing FIAT currency. Nowadays, Stablecoins in US dollars is very dominant in the market. Therefore, other countries are likely to be considered as a tool to maintain American financial domination.
In this case, Citigroup expects countries in Europe and China to invest in the Central Bank of Central Bank (CBDCS) or Stablecoins associated with original currencies. Therefore, the Stablecoin market is likely to be 90 % by 2030.
Moreover, Citigroup notes that Stablecoins bears the risk of operating in the case of possible De-PEG. The Investment Bank explains that a major event of activation disposal can significantly reduce encryption liquidity, affecting trading platforms and the public financial market.
At the time of the press, the value of the Stablecoin market is estimated at 237.25 billion dollars, with the Tether (USDT) market remaining with the dominance of 62.65 %.
Distinctive image from the Financial Times, the tradingview chart
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