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

With the expansion of the cryptocurrency and digital asset financial system has come the growth of the stablecoin market in the US and overseas, said the US Treasury in a report launched on April 30.

The research famous that there might be an 8.3x improve from the present stablecoin market cap of $234 billion in April 2025 to about $2 trillion by 2028.

“Evolving market dynamics have the potential to speed up stablecoins’ trajectory to achieve $2 trillion in market cap by 2028.”

Large Predictions for Future Progress

This projection assumes the passage of the GENIUS Act within the US, which might set up clear regulatory tips and drive market confidence and adoption.

The GENIUS Act (Guiding and Establishing Nationwide Innovation for US Stablecoins) defines “cost stablecoins” as digital property redeemable at a set worth, pegged to fiat, however non-yield-bearing. It additionally units out reserve guidelines for stablecoin issuers.

In early April 2, the US Home Monetary Companies Committee passed the STABLE Act, which supplies the Workplace of the Comptroller of the Forex (OCC) the authority to approve and supervise “federally certified nonbank cost stablecoin issuers.”

Stablecoin reserve necessities may additionally drive massive demand for short-dated U.S. Treasuries, it said. Projections counsel stablecoin issuers may maintain round $1 trillion in T-bills by 2028 if development hits expectations.

The Treasury additionally predicted that stablecoin transactions may rise from round $700 billion monthly as we speak to round $6 trillion monthly by 2028, which is roughly 10% of worldwide foreign exchange spot transactions.

If regulatory clarity is achieved, stablecoins may grow to be a mainstream monetary instrument not only for crypto customers, however for conventional finance, company treasury, and even sovereign liquidity administration.

For customers in rising markets, stablecoins present direct entry to US {dollars} with no need a US checking account, strengthening the forex’s international function, the report famous.

Stablecoin Ecosystem Outlook

The present stablecoin market capitalization is $244.5 billion, which represents round 8% of the entire crypto market cap, which is simply over $3 trillion, according to Coingecko.

The lion’s share of the stablecoin market is presently 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 (previously DAI) is third with 3% of the stablecoin market.

PayPal has seen vital development for its PYUSD stablecoin this 12 months. Nonetheless, it has lower than 0.36% market share. The corporate partnered with Coinbase lately to spice up the adoption of its dollar-pegged stablecoin.