Overview

• Issuance has climbed from roughly $200 billion at the start of 2025 to about $280 billion, according to Citi.
• Citi models show stablecoins could facilitate up to $100 trillion in annual transactions in the base case and $200 trillion in a bull case if they circulate at fiat-like velocity.
• The bank expects stablecoins to coexist with bank-issued tokens and CBDCs, with bank tokens potentially carrying higher volumes due to corporate preferences for compliance and real-time settlement.
• Dollar-linked tokens continue to dominate on-chain activity, a dynamic Citi says is reinforcing demand for short-dated U.S. Treasuries.
• A consortium of nine European banks is reported to be developing a euro-denominated stablecoin with a planned debut in late 2026.