Regulatory changes could be the catalyst to spark significant adoption of stablecoins and blockchain tech in 2025, according to investment banking giant Citigroup.
“2025 has the potential to be blockchain’s ‘ChatGPT’ moment for adoption in the financial and public sector, driven by regulatory change,” a team of Citigroup financial analysts said in an April 23 report.
A combination of growing regulatory support and adoption by financial institutions has set the stage for the stablecoin market cap to fly as high as $3.7 trillion by 2030, or in a base case, $1.6 trillion.
“The main catalyst for their greater acceptance may be regulatory clarity in the US, which could enable greater integration of stablecoins specifically, and blockchain more widely, into the existing financial system,” Citi said in its report.
“The tailwinds of regulatory support and the increased integration of digital assets into incumbent financial institutions