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
Bitcoin News Update: Bitcoin ETFs See $1.3B Outflow While Institutional Investors Enter the Market
- Bitcoin fell below $90K after erasing 2025 gains, with U.S. spot ETFs recording $1.32B in outflows as BlackRock's IBIT lost $532M. - Institutional buyers like El Salvador and MicroStrategy added $100M+ in BTC, contrasting with ETF redemptions and bearish options activity. - Regulatory uncertainty and technical indicators suggest prolonged volatility, with key support levels at $89.4K and $82.4K under pressure. - Binance's Teng called the 21% November drop part of healthy consolidation, while Dimensional
Bitcoin News Update: Typical Bitcoin Holder Now Sees 13% Decline as Price Drops Under $84k
- Bitcoin fell below $84,000 on Nov 20, 2025, a 32% drop from its October peak of $126,300, marking its largest correction since late April. - Macroeconomic pressures including stubborn inflation, weak jobs data, and ETF outflows exacerbated selloffs, with leveraged liquidations exceeding $1.3B. - Technical indicators show broken key support levels and a "death cross," while institutional buyers like Strategy added $835M BTC to stabilize prices. - The $83,500–$85,000 range is critical for near-term directi
Bitcoin News Update: Bitcoin's Drop Intensifies as Major Holder's Deposit Unable to Halt Crypto Market Downturn
- Bitcoin plunged 4.53% on Nov 21 as a 665.9 BTC whale deposit into Binance failed to halt a $120B crypto market crash. - Prices fell to $81,629 amid weak U.S. jobs data, fading macro optimism, and $3.9B in leveraged position liquidations across 24 hours. - Bitcoin ETFs saw $903M outflows while perpetual futures open interest dropped 35%, signaling institutional retreat from crypto. - Analysts warn of forced selling from leveraged holders like MicroStrategy as Bitcoin's $75K support level appears increasin
Bitcoin News Today: Crypto at a Turning Point: ETF Withdrawals and Federal Reserve Announcements Trigger Bitcoin's Sharpest Drop Since 2022
- Bitcoin fell to $95,000 in Nov 2025, its worst monthly drop since 2022, driven by ETF outflows, shifting Fed signals, and waning investor sentiment. - $1.32B in Bitcoin ETF outflows and $728M Ethereum losses reflect profit-taking after October's rally, with institutional players like MicroStrategy seeing share declines. - Fed officials remain divided on rate cuts, with liquidity risks highlighted by Bank of America as Bitcoin's 35% peak-to-trough drop signals market distress. - Crypto Fear & Greed Index
Trending news
MoreCrypto prices
More
