Citi says Hong Kong's stablecoin market could grow to be worth $16 billion.

Citi: Hong Kong Stablecoin Market Could Hit $16B—Issuers, Exchanges, Payment Firms to Gain

Hong Kong's stablecoin market has room to grow, according to Citi. The bank estimates the market could reach $16 billion (HK$124.8 billion), with a $8 billion range on either side. The projection draws from mainland payment platforms, where user balances equal ~20% of cash in circulation, 2.5% of demand and savings deposits, and 0.8% of total deposits.

Citi says growth could accelerate if monetary aggregates rise, overseas demand for Hong Kong stablecoins picks up, or on-chain activity explodes. That would mean more business for issuers, exchanges, and payment firms. Timing? The HKMA may hand out the first stablecoin licenses this month. The runway is clearing.