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
Astar (ASTR) Price Spike: Unraveling the Reasons for Recent Market Fluctuations
- Astar (ASTR) price surged amid Tokenomics 3.0 reforms, institutional capital inflows, and strategic partnerships in November 2025. - Deflationary mechanisms like Burndrop and a $29.15M buyback program reduced circulating supply to 8.24B tokens. - Galaxy Digital's $3. 3M OTC purchase and Coinbase listing roadmap signaled institutional confidence in ASTR's long-term potential. - Partnerships with Sony , Toyota , and Japan Airlines expanded ASTR's real-world utility in logistics and digital identity sectors
The Increasing Importance of STEM Education as a Strategic Asset in a Technology-Focused World Economy
- U.S. STEM education is reshaping curricula and partnerships to meet AI, cybersecurity, and renewable energy demands, driven by $75M investments like Farmingdale State College's expanded Computer Sciences Center. - Public-private collaborations, including NSF AI Education Act and Google/IBM workforce pledges, are accelerating workforce readiness through AI research and micro-credential programs. - STEM-focused universities achieved 11.5% average endowment returns in 2025, but proposed excise taxes threate
Aster DEX: Redefining the Landscape of Decentralized Trading
- Aster DEX is reshaping DeFi by bridging retail and institutional markets through hybrid AMM-CEX architecture and strategic partnerships. - The platform achieved 1.848 million users and $3.32B weekly trading volume in 2025, with $5.7B institutional buy volume in late 2025. - RWA integrations (gold, equities) and 7% staking rewards drive institutional adoption, while gasless trading and TWAP orders enhance execution efficiency. - Aster's 400% TVL growth and 5-7% annual token burns create scarcity, supporti
ZK Technology Experiences Rapid Growth in 2025: The Role of Institutional Involvement in Driving the Latest Crypto Bull Market
- Zero-knowledge (ZK) proofs drive 2025's crypto inflection point, enabling scalable, private blockchain solutions adopted by institutions like Goldman Sachs and Sony . - ZK rollups achieve 43,000 TPS, slashing costs and enabling compliance with GDPR/BSA, while Polygon's $1B investment accelerates gaming/NFT infrastructure. - Regulatory clarity via U.S. GENIUS Act and EU MiCA, plus ZK's privacy-preserving capabilities, reduce institutional risks and fuel $28B+ TVL in ZK-based protocols. - ZK token prices s
Trending news
MoreCrypto prices
More
