US Treasury Secretary Predicts Dollar-Pegged Stablecoins Could Reach $2 Trillion
US Treasury Secretary Scott Bessent stated that dollar-pegged stablecoins could exceed $2 trillion in market cap within the next few years during a Senate hearing. This projection coincides with Congress's efforts to establish new backing rules for these tokens.
Key Points
- Stablecoin market cap forecasted to reach over $2 trillion, requiring backing by US Treasury Bills.
- Citigroup analysts predict issuers may purchase an additional $1 trillion in Treasury Bills by 2030.
- Lawmakers advanced an amendment to the GENIUS Act mandating reserves in high-quality assets for stablecoin issuers.
- Total stablecoin market currently valued at approximately $255 billion, with dollar-pegged coins accounting for $233 billion (90% of the market).
- Top nine dollar-pegged stablecoins dominate market activity.
- Regulatory challenges include potential market shifts if the GENIUS Act faces delays and concerns over market concentration among major issuers.
- Increased stablecoin use in cross-border payments could enhance demand for US debt.
The stablecoin ecosystem continues to evolve amid regulatory scrutiny and technological advancements.