U.S. Treasury Secretary Scott Bessent predicts that the stablecoin market will grow from the current $240 billion to $2 trillion, driving demand for Treasury bonds.
During a hearing before the Senate Appropriations Committee on June 11, U.S. Treasury Secretary Scott Bessent affirmed the strategic role of stablecoins in reinforcing the global dominance of the USD. He stated that the size of the stablecoin market could exceed $2 trillion by 2028, creating strong demand for U.S. Treasury bonds.
This statement was made in response to a question from Senator Bill Hagerty, who introduced the Genius Act, which requires stablecoins to be fully backed by cash or short-term U.S. government bonds. According to estimates from an investment bank cited by Senator Hagerty, passing this law would expand the stablecoin market from the current $240 billion to $2 trillion by the end of 2028.
"I believe that legislation on stablecoins backed by Treasury bonds or government notes will create a market that can expand the use of the USD through stablecoins worldwide," Secretary Bessent emphasized. He assessed the figure of $2 trillion as reasonable and entirely attainable.
Reinforcing the global reserve status of the USD
Secretary Bessent argued that throughout history, the global reserve status of the USD has been challenged multiple times but has always been reaffirmed thanks to new economic mechanisms, and stablecoins could be the next cycle in this process. He asserted that the administration is committed to maintaining the USD's role as the global reserve currency through a focus on digital assets.
According to experts' analysis, requiring stablecoins to be backed by U.S. government debt will bring many strategic benefits. This will not only expand the depth of the Treasury bond market but also increase access to USD liquidity globally, especially in areas with limited access to traditional banking services.
Although stablecoins still face concerns about regulatory oversight and market stability, proponents argue that the increased influence of the USD in international finance through stablecoins will bring significant benefits to the U.S. economy. The development of this market is expected to create a stable and large demand for government debt instruments while reinforcing the financial leadership role of the U.S. on the international stage.
