Citigroup Predicts This Year Could Mark the “ChatGPT Moment” for Blockchain, with Stablecoin Supply Potentially Reaching $3.7 Trillion by 2030

Citigroup Predicts 2025 Could Be the “ChatGPT Moment” for Blockchain Adoption

In a new report released on Thursday, Citigroup indicated that 2025 could become the “ChatGPT moment” for the large-scale adoption of blockchain technology in the financial and public sectors, driven by regulatory changes. The bank also forecasts that, in an optimistic scenario, the stablecoin market could grow from its current size of approximately $240 billion to $3.7 trillion over the next five years.

Legislative Developments in the U.S.

Following the inauguration of a cryptocurrency-friendly government under President Trump earlier this year, Congress is currently evaluating stablecoin legislation—the House’s “Stablecoin Transparency and Accountability to Support Better Ledger Economy Act” (STABLE Act) and the Senate’s “U.S. Stablecoin National Innovation Guidance and Establishment Act” (GENIUS Act). If passed, these bills could trigger explosive growth in the stablecoin market, as large traditional banks such as Bank of America have expressed interest in entering this space.

Current Market Landscape

The largest stablecoin by market cap is Tether’s USDT, which has reached a market value of $146.5 billion. According to Tether’s reserve report for the fourth quarter of last year, the company currently holds tens of billions of dollars in U.S. Treasury securities. Citigroup noted, “A U.S. stablecoin regulatory framework could drive net new demand for U.S. Treasuries, making stablecoin issuers potentially one of the largest holders of U.S. government debt by 2030.”

Potential Threat to Traditional Banking

Citigroup further stated in the report that stablecoins could “pose some threat to the traditional banking system,” as they may replace a portion of deposit business. Currently, some banks are attempting to push legislation through lobbying organizations to limit the types of companies allowed to issue dollar-pegged stablecoins.