Citigroup forecasts substantial growth in the stablecoin market, potentially reaching a $2 trillion market capitalization by 2030. This projection, outlined in a recent Citigroup report, represents a tenfold increase from the current $240 billion valuation, driven by factors like regulatory clarity and traditional financial institution involvement. Regulatory Approval Could Fuel Expansion The report highlights the potential impact of pending stablecoin legislation in the US Congress. Passage of these laws could pave the way for increased participation from traditional finance players, with institutions like Bank of America already expressing interest in issuing USD-backed tokens. This regulatory clarity would instill confidence and attract further investment. Impact on U.S. Treasury Bonds Citigroup analysts suggest that well-defined stablecoin regulations in the US could transform issuers into significant holders of U.S. Treasury bonds, leading to a rise in demand. However, the report also acknowledges that the growth of stablecoins could present challenges and resistance from traditional banking systems, prompting need for regulatory oversight. The growth is expected to mirror the expansion of technologies like ChatGPT and demonstrates blockchain's evolving influence. ```