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The US Treasury has released a forecast indicating that stablecoins may reach a $2 trillion market cap by 2028, significantly altering the financial landscape.
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Factors driving this growth include regulatory changes and an increased institutional adoption of stablecoins tied to US Treasury bills.
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Max Keiser warns that the rise of stablecoins could challenge the stability of the US dollar, potentially increasing the national debt.
This article explores the projections of a $2 trillion stablecoin market by 2028, expert opinions on potential impacts on the US dollar, and industry developments.
Stablecoin Market To Reach $2 Trillion by 2028, US Treasury Projects
According to the US Treasury Borrowing Advisory Committee (TBAC), stablecoins could achieve a market capitalization of $2 trillion by 2028, a significant uptick from the current valuation of approximately $234 billion.
The report forecasts, “Evolving market dynamics, structures, and incentives have the potential to accelerate stablecoins’ trajectory to reach ~$2 trillion in market cap by 2028,” highlighting a rapidly changing financial landscape.
Expert opinions, including those from MEXC exchange COO Tracy Jin, suggest this milestone could be realized as soon as 2026. Jin emphasizes that compliance with new regulations will require stablecoin issuers to hold reserves primarily in short-dated T-bills, which may, in turn, enhance the relationship between stablecoin adoption and T-bill demand.
However, the US Treasury’s report indicates that the influx of stablecoins could compel retail banks to offer higher interest rates to depositors as they maneuver to maintain competitiveness.
In light of these developments, cryptocurrency advocate Max Keiser expressed his concerns, stating, “Stablecoins are a financial hospice where fiat money like the US dollar goes to die,” surfacing fears of potential devaluation and increased national debt.
Can Stablecoins Supplant the US Dollar’s Reign? Standard Chartered Weighs In
Keiser has linked the upsurge in stablecoin usage to rising national debt levels, contradicting promises of financial reform. He noted, “It also means that US indebtedness goes up, not down, as Trump has promised.”
Geoff Kendrick, Head of Digital Assets Research at Standard Chartered, corroborated the Treasury’s outlook, noting, “US Treasury is using our $2 trillion stablecoin forecast for their own projection, as per this TBAC Presentation.” Kendrick expects imminent legislation to spur stablecoin issuance further, raising critical questions about its implications for the T-bill market.
He elaborated, “For stablecoins to inflate from $230 billion to $2 trillion by 2028, we would require an additional $1.6 trillion in US T-bills to be held as reserves, which corresponds to all proposed T-bill issuance.”
Amidst this anticipation, Tether is planning to launch a US-only stablecoin by late 2025 or early 2026, according to CEO Paolo Ardoino. He suggested the favorable regulatory stance is designed to bolster the status of stablecoins as strategic financial instruments and place the US at the forefront of the global cryptocurrency landscape.
As the market dynamics evolve, increased stablecoin adoption could enhance the legitimacy of the entire cryptocurrency ecosystem, potentially benefiting Bitcoin (BTC) as institutional investors shift their focus towards digital assets, as indicated in a recent publication by US Crypto News.
Chart of the Day
The accompanying chart illustrates the significant growth of USDT, which now comprises over 60% of the total stablecoin market cap. This stark contrast with the Federal Reserve’s relatively flat currency in circulation emphasizes the dominance of stablecoins in the current economic climate.
Byte-Sized Alpha
- Eric Trump announces the integration of World Liberty Financial’s USD1 stablecoin with Tron at Token2049, positioning USD1 as the stablecoin of choice for MGX’s $2 billion investment in Binance.
- Bitcoin has reached new all-time highs in Argentina, suggesting it may serve as a safe haven amidst economic turbulence.
- Trump’s crypto wealth could account for 37% of his total assets, including the TRUMP meme coin and World Liberty Financial.
- Bitcoin ETFs saw a $56 million outflow, marking the first decline since April 16, indicating a slowdown in institutional demand.
- Robinhood’s Q1 crypto revenue has doubled to $252 million, alongside a 28% YoY increase in trading volumes, highlighting robust market activity.
- Bitcoin’s market position appears to be stabilizing, with signs of recovery as early bull trends emerge.
- Base blockchain outperformed Arbitrum, becoming the largest Layer-2 solution on Ethereum after advancing to Stage 1 maturity.
- AI agent tokens have seen a 39.4% increase in the past 30 days, outpacing traditional meme coins and decentralized AI projects.
Crypto Equities Pre-Market Overview
| Company | At the Close of April 30 | Pre-Market Overview |
| Strategy (MSTR) | $380.11 | $393.91 (+3.63%) |
| Coinbase Global (COIN) | $202.89 | $209.94 (+3.47%) |
| Galaxy Digital Holdings (GLXY.TO) | $21.92 | $22.78 (+3.94%) |
| MARA Holdings (MARA) | $13.37 | $13.95 (+4.34%) |
| Riot Platforms (RIOT) | $7.24 | $7.52 (+3.87%) |
| Core Scientific (CORZ) | $8.10 | $8.65 (+6.79%) |
Stay informed and engaged with the rapidly evolving crypto landscape. The implications of stablecoin adoption are profound, and awareness is key for navigating these financial changes.
