🇺🇸 **Market capitalization of stablecoins to exceed $2,000,000,000,000 by 2028** 📈
In a new report by the US Department of the Treasury, the forecast predicts stablecoins to grow from $230b to $2t due to regulation (GENIUS Act), increasing demand, tokenization of assets, and institutional interest.
**Key takeaways from the report:**
⊹ The growth of stablecoins could boost demand for short-term US bonds as they are used as collateral.
⊹ When interest is accrued, these assets could draw deposits away from banks.
⊹ Even without interest, banks are losing liquidity due to the convenience and accessibility of stablecoins.
⊹ Possible bank reactions include raising rates or seeking new sources of funding.
⊹ Stablecoins are becoming competitors to banks, a tool for exporting the dollar, and a driver of financial system transformation.
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