The stable market could soon eclipse the entire commercial ecosystem of cryptography which has given birth to it because the regulatory tail winds allow the integration of fixed value tokens in the consumer economy, according to the predictions of the Citi World Bank.
Above and beyond their role in token species for the Crypto trading community, the stablecoins – digital tokens whose value is mainly fixed to the US dollar – already develop in payments and shipments. The next five years will probably see certain participations of American currencies abroad and abroad as well as to be part of the short -term liquidity held in banks, according to a recent report by the Future Finance F by the Citi Institute. If yield stages can be issued, they can find a role in term deposits and retail money market funds.
“We are examining the integration of stablecoins into what you call the traditional economy,” said Ronit Ghose, world leader in the future of finance, Citi Institute, in an interview. “For example, the floors could be the cash flow stages of tokenized financial assets, or for the payments of SMEs and large companies. The dollar, and to a lesser extent the euro, has this type of international currency status. Stablescoins allow people around the world to have dollars or euros in an easy and low cost way. ”
The size of the Stablescoin market is currently around $ 240 billion, led by $ 145 billion USDT from Tether and $ 60 billion USDC from Circle. In the prediction of Citi’s basic cases, stablecoins will reach $ 1.6 billion by 2030, provided that regulatory support and institutional integration set up. In the more optimistic scenario of the bank, the market could ball at 3.7 billions of dollars. (The global market capitalization of cryptocurrency today represents around 3.45 billions of dollars.)
Large cryptographic companies like Freblocks, a platform to manage and move cryptographic assets, said that it was also noted a swing in the use of the stable reserve far from a regulation and a rail trading tool / out of the ramp to payments.
“Payment companies take advantage of the stablecoins for a variety of pure payment flows, including a cross-border transfer, discounts, merchant and other colonies,” said CEO Michael Shaulov in an email. “Payment companies represent 11% of all our customers, but 16% of global stablecoin transactions with more than 30% Q / Q growth in volumes. It is likely that this growth will continue and represent 50% of the volume of Stablecoin within 12 months. ”
During the last 90 days, the combined volume of the USDT and the USDC on Fireblocks was $ 517 billion, or 44% of the total volume, a figure that has doubled in recent years. As a result, payment companies generated $ 82 billion, up 38.2% in the quarter, said Fireblocks.
The Empire retreats
In the past, the Citi’s future funding team has weighed the potential of digital currencies from the Central Bank (CBDC), often considered as the antithesis of libertarian innovation in freewheeling by the cryptographic community, a point of view also held by President Donald Trump.
For Citi Ghosis, the growth of stablecoins raises many questions: if the United States takes care of Stablecoins, Europe too? Or will Europe prefer CBDC? Will CBDCs grow in the rest of the world? How do the deposit tokens and tokens take place?
Whatever the landscape, the banks will probably be available from all the above, said Ghose. All banks, by definition, make interban payments, which make sense with a wholesale CBDC, as well as retail CBDCs, he said.
“Depending on the country, there may be a stablecoin option or there may be a CBDC option,” said Ghose. “From the point of view of the crypto, it is like Starwars, where the CBDCs are the evil empire, as opposed to the guy of the crypto, who consider themselves Luke Skywalker.”
