US Treasury Predicts Stablecoin Market Could Surge to $2 Trillion by 2028

By: cryptosheadlines|2025/05/03 08:45:01
0
Share
copy
Airdrop Is Live CaryptosHeadlines Media Has Launched Its Native Token CHT. Airdrop Is Live For Everyone, Claim Instant 5000 CHT Tokens Worth Of $50 USDT. Join the Airdrop at the official website, CryptosHeadlinesToken.com With the growth of the cryptocurrency and digital asset economy has come the expansion of the stablecoin market in the United States and abroad, stated the US Treasury in a report released on April 30.The research noted that there could be an 8.3x increase from the current stablecoin market cap of $234 billion in April 2025 to about $2 trillion by 2028.“Evolving market dynamics have the potential to accelerate stablecoins’ trajectory to reach $2 trillion in market cap by 2028.”Big Predictions for Future GrowthThis projection assumes the passage of the GENIUS Act in the US, which would establish clear regulatory guidelines and drive market confidence and adoption.The GENIUS Act (Guiding and Establishing National Innovation for US Stablecoins) defines “payment stablecoins” as digital assets redeemable at a fixed value, pegged to fiat, but non-yield-bearing. It also sets out reserve rules for stablecoin issuers.In early April 2, the US House Financial Services Committee passed the STABLE Act, which gives the Office of the Comptroller of the Currency (OCC) the authority to approve and supervise “federally qualified nonbank payment stablecoin issuers.”Stablecoin reserve requirements could also drive large demand for short-dated U.S. Treasuries, it stated. Projections suggest stablecoin issuers could hold around $1 trillion in T-bills by 2028 if growth hits expectations.The Treasury also predicted that stablecoin transactions could rise from around $700 billion per month today to around $6 trillion per month by 2028, which is roughly 10% of global forex spot transactions.If regulatory clarity is achieved, stablecoins could become a mainstream financial instrument not just for crypto users, but for traditional finance, corporate treasury, and even sovereign liquidity management.Potential drivers of stablecoin growth. Source: US Treasury DeptFor users in emerging markets, stablecoins provide direct access to US dollars without needing a US bank account, strengthening the currency’s global role, the report noted.Stablecoin Ecosystem OutlookThe current stablecoin market capitalization is $244.5 billion, which represents around 8% of the total crypto market cap, which is just over $3 trillion, according to Coingecko.The lion’s share of the stablecoin market is currently dominated by Tether, which has a 61% share with $149 billion USDT in circulation.Circle is second with $61 billion in USDC circulation, giving it a 25% market share, and decentralized USDS (formerly DAI) is third with 3% of the stablecoin market.PayPal has seen significant growth for its PYUSD stablecoin this year. However, it has less than 0.36% market share. The company partnered with Coinbase recently to boost the adoption of its dollar-pegged stablecoin.SPECIAL OFFER (Sponsored)Binance Free $600 (CryptoPotato Exclusive): Use this link to register a new account and receive $600 exclusive welcome offer on Binance (full details).LIMITED OFFER for CryptoPotato readers at Bybit: Use this link to register and open a $500 FREE position on any coin!Source link

You may also like

The flow of stablecoins and the spillover effects in the foreign exchange market

Research has found that an exogenous increase in net inflows of stablecoins significantly widens the price deviation between stablecoins and traditional foreign exchange, leads to depreciation of the local currency, and worsens the financing conditions for synthetic dollars (i.e., increases the doll...

After two years, Hong Kong's first batch of stablecoin licenses finally issued: HSBC, Standard Chartered make the cut

The regulated entity is set to launch a stablecoin in the first half of this year.

The person who helped TAO rise by 90% has now single-handedly crashed the price again today

As long as people are around, the story continues. But once they're gone, you may not even find a worthy opponent to play against.

3-Minute Guide to Participating in the SpaceX IPO on Bitget

Bitget IPO Prime brings a rare opportunity for global users to participate in world-class unicorn IPOs, allowing ordinary users to equally access the potential economic benefits of top-tier IPOs.

Top 5 Cryptos to Buy in 2026 Q1: A ChatGPT Deep Dive Analysis

Explore the top 5 cryptos to buy in Q1 2026 including BTC, ETH, SOL, TAO, and ONDO. See price outlooks, key narratives, and institutional catalysts shaping the next market move.

How to Earn $15,000 with Idle USDT Before Altcoin Season 2026

Wondering if altcoin season is coming in 2026? Get the latest market update, and learn how to turn your idle stablecoins waiting for entry into extra rewards up to 15,000 USDT.

Popular coins

Latest Crypto News

Read more