According to a report by Citizens JMP Securities, the stablecoin market could increase its market cap from the current $225 billion to between $3 and $4 trillion by 2030. This article explores the factors contributing to this growth.
Growth Projection for Stablecoins
The current market cap for stablecoins sits at $225 billion, but firms like Wells Fargo and Citigroup are closely monitoring the space. Devin Ryan, head of financial technology research at Citizens JMP, stated that stablecoins could open up almost $100 billion in annual revenue for issuers.
Impact of New Regulations on the Market
Ryan noted that major players from different industries are entering what he calls a post-regulatory 'land grab.' Support from the government and the anticipated passing of the GENIUS Act on stablecoin legislation will further fuel interest from traditional investors.
Role of Stablecoins in the Economy
Stablecoins are becoming useful in everyday finance, including remittances, business payments, and e-commerce. In inflationary environments, they offer a practical store of value. Ryan mentioned that the growth of stablecoins could boost demand for US government bonds.
According to analysts, the stablecoin market has the potential to grow significantly due to clearer regulatory frameworks and the increasing role of these assets in the economy. This growth could strengthen the dollar's position globally.
