Blockchain as a new financial infrastructure: Stablecoins pave the way for tokenized assets

The Stablecoin Surge

The stablecoin market in the crypto sector could grow more than 10x over the next five years, potentially becoming the next trillion-dollar opportunity, analysts say.

The current stablecoin market cap is around $225 billion, according to CryptoQuant. But Citizens JMP Securities projects it could reach over $3 trillion by 2030, says Devin Ryan, Head of Fintech Research, in a report last week. The Citi Institute estimates a range from $1.6 trillion to $3.7 trillion by the same year, according to a May 30th note by analyst Alex Saunders. Wells Fargo notes that stablecoins are already reaching levels that deserve close attention.

“Banks, fintechs, payment processors, Big Tech, and even central banks are entering what we see as a post-regulatory ‘land grab,’” says Ryan of Citizens JMP.
“Even under normalized interest rates, our $3 trillion forecast implies nearly $100 billion in annual revenue potential for issuers – either as added fees or to offset declining transaction revenues.”

What Are Stablecoins?

Stablecoins are cryptocurrencies whose value is pegged to another asset — most commonly the U.S. dollar.
They aim to bring the stability of traditional currencies into blockchain ecosystems, which offer high speed and transfer efficiency. The top players are:

• USDT – issued by Tether
• USDC – issued by Circle

Shift in Usage

Originally used mostly as bridge currencies for traders, stablecoins are now attracting interest from banks and payment firms. This shift is driven by:

• A regulatory pivot under the Trump administration, which is rolling back Biden-era restrictions
• Progress in Congress, where a stablecoin bill could pass as early as August

Beyond the U.S., momentum is building globally:

• GENIUS Act in the U.S.
• MiCA in the EU
• Frameworks in Singapore and other jurisdictions

All are laying the groundwork for a global regulatory regime, which Ryan believes will accelerate institutional adoption of stablecoins.

Citigroup’s Alex Saunders adds that beyond trading, stablecoins could become:

• A store of value
• A hedge against inflation or political instability

He notes that stablecoin issuers will increase demand for U.S. Treasuries, used as collateral reserves. The role of the U.S. dollar as a reserve currency will be reflected in, rather than led by, the issuance of stablecoins tied to various fiat currencies.

Ryan also emphasizes real-world uses, including:

• International remittances
• B2B payments
• E-commerce
• Tokenized financial markets
• Value storage in high-inflation economies

These areas are expected to be key growth drivers.

“Crucially for the U.S., we expect structural demand for several trillion dollars in U.S. debt – supporting liquidity and reinforcing the dominance of the U.S. monetary system,” says Ryan.
“More broadly, we see stablecoin adoption as a gateway to broader tokenization of both financial and non-financial assets, with blockchain technology forming the foundation of a digitized future economy.”