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%Stablecoin payment volumes are forecast to surpass $1 trillion U.S. annually by 2030.

The bullish prediction comes from a joint report by crypto market maker Keyrock and Latin American exchange Bitso.

Stablecoins like USDC (CRYPTO: $USDC ) are %Cryptocurrencies whose value is pegged to an underlying asset, typically the U.S. dollar or price of gold.

According to the report, stablecoin growth will be driven by institutional adoption across business-to-business (B2B), peer-to-peer (P2P), and card payments.

The report goes on to forecast that stablecoins will continue to gain on traditional finance in coming years because they outperform on both speed and cost.

Authors of the report add that foreign exchange (FX) settlement could be the largest untapped opportunity for stablecoins in coming years.

The $7.5 trillion U.S. per day FX market still largely settles through correspondent banks. Meanwhile, on-chain FX using stablecoins could enable atomic swaps with instant settlement.

With greater regulatory clarity, liquidity and interoperability, stablecoins could handle as much as 12% of all cross-border payment flows by the end of the decade, says the report.

The bullish forecast predicts that that every major financial technology firm will integrate stablecoin infrastructure over the few next years.

Lastly, the report states that the continued growth of stablecoins, which currently have a market capitalization of $260 billion U.S., could also have ripple effects on monetary policy.

Stablecoins could represent roughly a quarter of the U.S. Treasury bill market and influence how the Federal Reserve manages short-term interest rates by decade's end, say the report authors.