Tag: supply

• The base estimate places the offer in 1.6 billion dollars; It is up to 3.7 billion dollars.
• Active stable currency wallets increased 53% year -on -year.
• Traditional banks press to restrict stable currency emitters.

The Global Stablecoins market is heading towards a dizzying expansion, and Citigroup projects that the total market capitalization will exceed 2 billion dollars by the end of this decade. In a Report published on Thursday the banking group said that the stablecoins (digital tokens linked to fiduciary coins) could multiply by more than eight from the current level of 240 billion dollars, driven by regulation, institutional adoption and the growing demand for payments and defi. Stablecoins are already widely used for remittances, the generation of performance in decentralized loan platforms and as coverage against inflation in countries with volatile local currencies. His role in the streamlining of cross -border payments has also attracted the interest of central banks and financial technology companies.

Regulatory clarity is key to growth that exceeds 1.6 billion dollars

The Citigroup base scenario anticipates that the stable currency supply will reach 1.6 billion dollars by 2030. A more bullish scenario raises that figure to 3.7 billion dollars.

This growth will depend on the implementation of comprehensive regulations, especially in the United States. The advances of the administration of President Trump have given a new impulse to the legislation centered on the stablecoins.

Both cameras of Congress are currently examining proposals that could grant traditional institutions, such as the Bank of America, the ability to issue stable currencies backed by US dollars.

The report emphasizes that strong regulatory support would improve confidence in stable currencies and boost the demand for American treasure bonds, potentially positioning stable currencies as important government debt holders by 2030.

Tether, the current market leader, already has tens of billions of dollars in treasure bonds, according to his latest reserve disseminations.

Institutional demand and defi promotes wallet growth by 53%

The institutional interest is accelerating the popularization of the stablecoins. Only in the last year, the number of active stablcoins wallets increased from 19.6 million in February 2024 to 30 million in February 2025, an increase of 53 %.

This trend is aligned with the growing role of stable currencies in decentralized finances, cross -border payments and cryptocurrency trade.

The increase in active wallets highlights the growing participation of users, while the total stable currency supply also increased considerably. Of 138 billion dollars in February 2024, the total supply has reached 225 billion dollars, an year -on -year growth of 63 %.

Citigroup attributes these profits to greater adoption by retail institutions and users seeking stability linked to the dollar in volatile cryptocurrency markets.

Traditional banks resist the new emitters

Despite the increase in demand, not all financial system actors agree. According to reports, some traditional banks have pressed for a stricter control over the broadcast of Stablecoins, with the aim of avoiding what Citigroup describes as “deposit substitution.”

This refers to the fact that users are transferring funds from their traditional savings accounts to stable currencies, which could alter the conventional banking model.

Therefore, banks advocate restrictions on which entities can issue stable currencies. Their concern lies in the possibility that these can avoid the banking system and, at the same time, offer profitability with fluid interest and transfers, especially as it improves regulatory transparency.

The Federal Reserve considers that the stable currencies drive the dollar

The governor of the Federal Reserve, Christopher Waller, recently commented on the subject, suggesting that the stable currencies linked to the dollar could help reinforce the dominance of the currency worldwide.

He recognized his current role to facilitate efficient transfers within cryptographic space and highlighted his contribution to financial innovation.

Waller comments occur in the midst of intense political debates on how to regulate digital assets without suffocating their development or exposing consumers to new risks.

Since stable currencies are considered more and more integral part of the future financial ecosystem, the Citigroup prognosis describes both the opportunity and the challenge. The trajectory to a multibillionaire market could be underway, but only if the policies adapt to the rhythm of technology.