Banking powerhouse Citigroup says blockchain could soon have its breakout moment thanks to the rapid rise of stablecoins. In a new report the bank forecasts stablecoin supply could skyrocket from $240 billion to over $2 trillion by 2030 marking a tenfold jump. This shift could spark a historic transformation in crypto adoption.

Citigroup believes both government and financial institutions could play a major role especially with new regulatory frameworks on the horizon. U S lawmakers are debating stablecoin-focused bills in both the Senate and House potentially paving the way for traditional giants like Bank of America to issue dollar-backed crypto tokens.

The report adds that stablecoins might soon rival traditional banks in holding U S Treasuries. Citigroup also highlights that stablecoins could disrupt the banking sector through deposit substitution giving crypto an even stronger foothold. With favorable regulation the stage is set for stablecoins to reshape the future of finance.