Stablecoins on monitor for $2T market cap by 2028 — US Treasury


US Greenback-pegged stablecoins are on monitor to succeed in an mixture market capitalization of roughly $2 trillion by 2028, in line with the USA Division of the Treasury’s Q1 2025 report.

Stablecoins’ cumulative market cap presently stands at roughly $230 billion, however “[e]volving market dynamics [have] the potential to speed up stablecoins’ trajectory to succeed in ~$2tn in market cap by 2028,” the Treasury mentioned within the April 30 report. 

A stablecoin is a cryptocurrency whose worth is pegged to a standard asset just like the US greenback. In keeping with the report, such tokens are already “ubiquitously utilized as ‘money on-chain,’ successfully serving as a brand new cost mechanism.”

Moreover, the emergence of “tokenized [money market funds] has lately created an alternate choice to stablecoins, primarily given their yield-bearing characteristic,” the report reads.

Treasury on stablecoins’ impression. Supply: US Treasury

Associated: Stablecoins boosting demand for US T-bills: Treasury Dept

Embracing tokenization

The report is the newest instance of how the US authorities is embracing blockchain know-how, particularly after US President Donald Trump commenced his second time period of workplace on Jan. 20. 

The Treasury beforehand endorsed cryptocurrency in December, noting that the know-how guarantees to create a “new monetary market infrastructure,” probably growing world demand for US Treasury payments. US Greenback-pegged stablecoins equivalent to Tether (USDT) and USDC (USDC) make investments fiat backing into yield-bearing devices equivalent to US Treasurys. 

“[B]ecause most stablecoin collateral reportedly consists of both Treasury payments or Treasury-backed repurchase settlement transactions, the expansion in stablecoins has seemingly resulted in a modest improve in demand for short-dated Treasury securities,” the Treasury mentioned in December.

Circle, Donald Trump, Tether, Stablecoin
The present state of stablecoins. Supply: US Treasury

In its April report, the Treasury mentioned that pending stablecoin laws would “require stablecoin issuers to carry [short-dated] T-bills,” thus solidifying the hyperlink between stablecoin adoption and US Treasury invoice demand. 

The report additionally famous that the proliferation of stablecoins may put strain on retail banks to pay greater rates of interest to depositors. 

As of April 25, Tether’s USDT is the dominant stablecoin, commanding roughly 66% of market share, in line with a report by researcher Nansen. 

The token has a market capitalization of roughly $150 billion, in line with CoinGecko. Circle’s USDC ranks second, with a market capitalization of roughly $60 billion as of April 30.

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