Stablecoin Market Projected to Reach $1.2 Trillion by 2028
Stablecoins are projected to reach a $1.2 trillion market by 2028, increasing from the current size of $270 billion, according to a report by Coinbase analysts.
- The forecast is based on a stochastic model analyzing various growth scenarios for the stablecoin sector.
- Growth depends on incremental adoption supported by policy changes.
- Major issuers like Circle and Tether typically hold large U.S. Treasury bill portfolios to back stablecoins.
- This growth could result in approximately $5.3 billion in new T-bill purchases weekly.
- Such inflows may lower the three-month Treasury yield by 2-4 basis points over time.
- Conversely, redemption surges could lead to forced selling and tighten liquidity in the T-bill market.
- The recently passed GENIUS Act mandates one-to-one reserves and audits for stablecoin issuers starting in 2027, aiming to mitigate risks of destabilizing runs.