According to the report, stablecoin issuers have the potential to overtake major sovereign governments as the largest holders of the U.S. Treasury.

According to global bank Citi, 2025 may be a turning point in the acceptance of stablecoins on the blockchain, similar to the breakthrough year of artificial intelligence (AI) with the well-known software ChatGPT. According to research released earlier this week by the bank's experts, 2025 might be blockchain's ChatGPT moment.

Stablecoins, a category of cryptocurrencies based on established currencies like the US dollar, are at the core of Citi's forecast. With their recent explosive rise, these tokens—led by Tether's $145 billion USDT and Circle's $60 billion USDC—are being utilized more and more for international payments and remittances.

According to Citi's base scenario, the asset class may increase from its current $230 billion to $1.6 trillion by 2030, provided that institutional integration and regulatory backing materialize. The market may soar to $3.7 trillion in the bank's more optimistic scenario, but in the bank's bear case, persistent structural issues might limit the figure closer to $500 billion.

According to the research, a recent presidential executive order mandating the creation of a federal framework for digital assets is one of the main drivers of the U.S.'s favorable regulatory position. Because stablecoin regulations are clearer, these tokens may become more integrated into the financial system and provide quicker payments, more transparency, and more effective asset settlement.

It is anticipated that stablecoins would continue to be largely denominated in dollars. The study predicts that by 2030, almost 90% of stablecoins in circulation would still be based on the US dollar, cementing the currency's dominance.