Blockchain could be headed for ‘ChatGPT moment’ in adoption: Citigroup
Regulatory changes are expected to drive significant adoption of stablecoins and blockchain technology by 2025, according to Citigroup. The stablecoin market cap could reach $3.7 trillion by 2030, with a base case of $1.6 trillion. Regulatory clarity in the US is seen as a key factor for integrating stablecoins into the financial system. The GENIUS Act is being considered to regulate US stablecoins for legal payment use. Stablecoin issuers may need to hold US Treasuries as collateral, potentially leading them to hold more Treasuries than any jurisdiction by 2030. The stablecoin market cap surpassed $230 billion in April, with Tether and USDC controlling 90% of it. Challenges include potential depegging events, which could harm market liquidity and trigger broader financial system issues.
