Citigroup (C) is bullish on stablecoins. Real bullish.
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In a new forecast, the lender says that the stablecoin market is expanding much faster than expected and could reach $4 trillion by 2030 in the most optimistic scenario. Citigroup notes that stablecoin issuance volumes have already risen from $200 billion at the start of this year to $280 billion today.
The new forecast says that issuance of stablecoins such as Tether’s USDT and Circle Internet Group’s (CRCL) USDC is likely to reach $1.9 trillion by 2030 in a base case scenario and $4 trillion in the most aggressive bull case.
Supporting Transactions
Citigroup also notes that if stablecoins circulate at a velocity comparable to fiat currencies such as the U.S. dollar, they could end up supporting $100 trillion in annual transactions by 2030. Citi wrote in its forecast that stablecoins are having their “ChatGPT moment,” referring to the explosive growth.
Citigroup also framed the growth of stablecoins not as a battle to replace traditional banks and other financial institutions but as part of a reimagining of financial infrastructure. Different forms of digital money, including stablecoins, bank tokens, and central bank digital currencies (CBDCs), are likely to coexist in the future, with each finding its niche, concludes Citigroup.
Is CRCL Stock a Buy?
Circle Internet Group (CRCL), which went public earlier this year, has a consensus Moderate Buy rating among 14 Wall Street analysts. That rating is based on seven Buy, four Hold, and three Sell recommendations issued in the last three months. The average CRCL price target of $187.31 implies 48.84% upside from current levels.
