The bank’s research team now expects stablecoin issuance to approach $1.9 trillion within five years, up from an earlier forecast of $1.6 trillion. In a scenario where adoption accelerates faster, supply could swell toward $4 trillion.

That growth, Citi argues, could underpin as much as $100 trillion in annual transactions – a scale that rivals existing payment systems even if it still trails the trillions banks process each day.

Rather than portraying stablecoins as a disruptive force, the report frames them as an enhancement to existing rails. Analysts described them as the “ChatGPT moment” for blockchain in institutional finance: a technology that makes previously theoretical use cases practical.

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Yet Citi stressed that not every payment need is solved by stablecoins. Domestic instant-transfer systems are already widespread and efficient in many countries, meaning the biggest opportunities remain in global commerce, cross-border settlements, and areas where current systems remain costly or fragmented.

By casting stablecoins as both evolutionary and transformative, Citi’s forecast highlights a sector that could be one of the most important growth engines for blockchain in the years ahead.

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