US Treasury Forecasts Stablecoin Market to Reach $2 Trillion by 2028

The US Treasury has released a report suggesting the stablecoin market could see an 8.3x increase, reaching $2 trillion by 2028, driven by the growth of the cryptocurrency and digital asset economy. This projection is based on the successful passage of the GENIUS Act, which would set clear regulatory guidelines for stablecoins and thus foster market confidence.

The report also notes that stablecoin transactions could grow from $700 billion to $6 trillion per month, representing about 10% of global forex transactions. Additionally, the Treasury predicts that stablecoin issuers could hold around $1 trillion in short-dated U.S.

Treasuries by 2028, and that stablecoins could provide users in emerging markets direct access to US dollars without the need for a US bank account. Currently, Tether dominates the stablecoin market with a 61% share.