Stablecoins play an increasingly important role in both crypto and traditional finance markets, according to a Friday’s report of the Giant Citigroup of Wall Street.
As the use of Stablecoin increases, they also demand for short -term US resources, although changing from money market funds may limit the net impact, the report said.
The law considered in Congress could further introduce this trend by ordering reserves held in the short-term government debt, the bank said.
Citi said that the dominance of the US dollar in Stablecoin’s issuance reflects its status as a global currency reserve, rather than pushing it.
The dollar-supported dollar such as the USDT remains dominant, fueling through their major role in crypto trading and blockchain-based payments, the bank said.
Meanwhile, new players such as 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 barriers such as yield restrictions can grow.
However, Stablecoin issuance trends can offer views on the emerging global financial order, the report added.
Read more: US Stablecoin bill approval can trigger a long-term Crypto Bull market: Bitwise
