Citigroup: Stablecoins Will Extend Beyond Crypto Trading to Mainstream Economic System

BlockBeats News, May 12th, according to CoinDesk's report, Citigroup predicts that with regulatory tailwinds driving the integration of stablecoins into the mainstream economy, the stablecoin market may soon surpass the entire crypto trading ecosystem that birthed it.

Stablecoins are not just playing the role of "tokenized cash" in the crypto trading community anymore. These digital tokens, primarily pegged to the US dollar, have started expanding into areas such as payments and remittances.

A recent report from Citigroup's Future of Money think tank pointed out that stablecoins could potentially replace part of the foreign and domestic currency reserves over the next five years and also become part of banks' short-term liquidity.

The report also suggests that if interest-bearing stablecoins were to be introduced, they could play a role in time deposits and retail money market funds.