US Treasury: Stablecoins to Grow to $2 Trillion by 2028

The stablecoin market is rapidly growing and is projected to reach a market capitalization of $2 trillion by 2028.

According to BeInCrypto, a cryptocurrency-focused media outlet, the US Treasury, through the Treasury Borrowing Advisory Committee (TBAC) report, forecasts that the stablecoin market will grow to approximately $2 trillion by 2028 due to increased institutional investment, the spread of asset tokenization, and the integration of store payments. This represents more than a sevenfold increase from the current level of about $240 billion.

The report stated, "Changes in market structure and increased incentives could accelerate the growth trajectory of stablecoins," and "Stablecoins will be fully integrated with the existing financial system." It particularly highlighted PayPal's PYUSD as a key catalyst for commercial payment cases and the spread of interest-bearing stablecoins.

Additionally, the report assessed that the spread of stablecoins could replace the demand for bank deposits and increase the demand for US Treasury bonds. If the GENIUS Act, currently being promoted in the US Congress, is passed, issuers would be required to hold US Treasury bonds as reserves, which could directly connect to the bond market.