Stablecoins on track for $2T market cap by 2028 — US Treasury
US Dollar-pegged stablecoins are projected to reach a market capitalization of around $2 trillion by 2028, as stated in the US Department of the Treasury’s Q1 2025 report. The current market cap is approximately $230 billion. Stablecoins, which are cryptocurrencies tied to traditional assets like the US dollar, are increasingly used as a payment mechanism. The emergence of tokenized money market funds offers an alternative to stablecoins due to their yield-bearing features. The Treasury report highlights the government's support for blockchain technology and its potential to enhance financial market infrastructure, increasing demand for US Treasury bills. Stablecoin issuers may be required to hold short-dated T-bills under pending legislation, linking stablecoin growth to Treasury bill demand. Tether (USDT) holds about 66% of the stablecoin market share, with a market cap of roughly $150 billion, while Circle’s USDC follows with around $60 billion. The rise of stablecoins may pressure retail banks to offer higher interest rates to depositors.
