A Citigroup report released Friday highlights the increasing importance of stablecoins in both cryptocurrency markets and traditional finance. The report notes that as stablecoin usage expands, so does the demand for short-term U.S. Treasuries.
Pending legislation in Congress, requiring reserves to be held in short-dated government debt, could further solidify this trend, according to Citigroup. The bank also stated that the U.S. dollar's dominance in stablecoin issuance is a reflection of its status as the global reserve currency.
Dollar-backed stablecoins like USDT continue to lead, driven by their key role in crypto trading and blockchain payments. Citigroup estimates the potential market for stablecoins could reach $1.6-$3.7 trillion by 2030, but regulatory restrictions may limit growth.
This article is based on our author's analysis of materials taken from the following source: Citigroup report, Friday.