Wall Street Bank Citi (C) Sees Stablecoins Powering Crypto’s Next Growth Phase

Citi analysts observe that stablecoins have grown in tandem with the broader crypto market since the GENIUS Act in July, leading them to raise their 2030 crypto market cap outlook to $1.9 trillion. Stablecoins consistently represent 5%–10% of the total market capitalization, primarily serving as an on-ramp to crypto. The bank anticipates near-term growth will mirror the overall digital asset market. While the stablecoin boom has boosted activity on Ethereum, Citi warns this dominance may fade as issuers develop proprietary networks. The primary driver for stablecoin adoption is seen as their "store of value" function in emerging markets facing inflation, although payments remain a niche use case. Citi suggests the impact on bank deposits will likely be modest, drawing a parallel to the limited disruption caused by money market funds in the 1980s. The US dollar continues to dominate, but regulatory shifts, such as those in Hong Kong, could reshape the landscape.

(Source：CoinDesk)