Cryptocurrencies do not threaten the global hegemony of the U.S. dollar; rather, stablecoins make the American currency more accessible. This perspective was shared by Citi Wealth analysts in their Market Outlook 2025 report.

“Initially, crypto assets like Bitcoin were envisioned as competitors to fiat currencies. […] However, stablecoins, which account for over 80% of cryptocurrency trading volume, challenge this narrative,” the experts emphasized.

They highlighted that approximately 93% of all stablecoins are pegged to the dollar, with issuers holding reserves in U.S. currency, Treasury bonds, repurchase agreements, and money market funds.

“Instead of usurping the dollar, these cryptocurrencies could make dollars more accessible globally and reinforce the long-standing dominance of the U.S. currency,” the analysts stated.

According to Citi, establishing a regulatory framework for stablecoins in the U.S. would boost their attractiveness to investors. With rising demand, stablecoin issuers purchase more Treasury bonds.

As per CoinGecko, the total market capitalization of stablecoins is $206.7 billion, with the leading stablecoin, USDT, accounting for $139.8 billion. Coinbase analysts attribute this growth to increasing demand for on-chain lending rates.

Citi specialists noted the most significant growth in stablecoin capitalization occurred over the past five years.

In Q1 2024, researchers recorded peak activity in the sector, with trading volumes reaching $5.5 trillion. For comparison, Visa’s payment network processed approximately $3.9 trillion during the same period.

Experts highlighted that traditional payment providers like Visa and PayPal are adapting to this expansion by offering their own stablecoins or facilitating transactions in coins issued by others.