Stablecoins Boost Treasury Bill Demand, Reflect Dollar Dominance, Citi Says

May 30, 2025

in Breaking, News

Reading Time: 8 mins read

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By Will Canny, AI Boost|Edited by Stephen Alpher

May 30, 2025, 2:15 p.m.

Major banks HSBC Citi logos (Miquel Parera/Unsplash)

Citi said increased stablecoin usage should boost T-bill demand.
Legislation currently under consideration in Congress should further support this trend by requiring reserves to be held in short-dated government debt, the report said.
The potential market is huge, and could reach $3.7 trillion by 2030 in the bank’s bull case scenario.

Stablecoins are playing an increasingly important role in both crypto markets and traditional finance, according to a Friday report by Wall Street giant Citigroup.

As stablecoin usage grows, so does their demand for short-term U.S. Treasuries, although substitution from money market funds may limit the net effect, the report said.

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Legislation under consideration in Congress could further entrench this trend by requiring reserves to be held in short-dated government debt, the bank noted.

Citi said the U.S. dollar’s dominance in stablecoin issuance reflects its status as the global reserve currency, rather than driving it.

Dollar-backed stablecoins like USDT remain dominant, fueled by their central role in crypto trading and blockchain-based payments, the bank said.

Meanwhile, new players like PayPal (PYPL) and Visa (V) are also experimenting with stablecoin use cases, Citi said.

The potential market is significant, $1.6–$3.7 trillion by 2030, according to Citi, but regulatory constraints such as yield restrictions may cap growth.

Still, stablecoin issuance trends could offer insights into the evolving global monetary order, the report added.

Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk’s full AI Policy.

Will Canny is an experienced market reporter with a demonstrated history of working in the financial services industry. He’s now covering the crypto beat as a finance reporter at CoinDesk. He owns more than $1,000 of SOL.

“AI Boost” indicates a generative text tool, typically an AI chatbot, contributed to the article. In each and every case, the article was edited, fact-checked and published by a human. Read more about CoinDesk’s AI Policy.