US Treasury Projects Stablecoin Market to Reach $2 Trillion by 2028

US Treasury Projects Stablecoin Market to Reach $2 Trillion by 2028

The United States Treasury Department, through its Treasury Borrowing Advisory Committee report released April 30, 2025, predicts the stablecoin market could rise to $2 trillion by 2028. The report cites growing institutional interest as a primary driver of expansion.

Growing stablecoin markets impact global finance, with potential ripple effects on digital and traditional financial systems. Immediate market reactions remain cautious but show growing interest in stablecoins and their potential role in financial operations.

The Treasury Borrowing Advisory Committee’s report highlights the robust growth potential for stablecoins, projecting a market cap increase from approximately $240 billion to $2 trillion by 2028.

“Evolving market dynamics, structures, and incentives have the potential to accelerate stablecoins’ trajectory to reach ~$2 trillion in market cap by 2028.”

The report, authored by seasoned financial executives, notes no specific comment from individual Treasury leaders such as Janet Yellen. Released by the committee, the document serves as the department’s official stance on stablecoin futures.

Stablecoins, predominantly USD-pegged, are seeing increased adoption among financial institutions. The sector’s growth aligns with broader efforts to integrate digital assets into traditional finance. As a backdrop, Tether (USDT) and USD Coin (USDC) are significant players in this projected growth trajectory, with balance sheet implications for major financial entities supporting stablecoin frameworks.

The USD-denominated stablecoins maintain a dominant role, with the report implying potential regulatory enhancements that could fortify their position. The rise of interest-bearing stablecoins underpins new financial instruments across decentralized networks. Such developments may influence regulators to address emerging needs for compliance, supervision, and oversight. Market participants look towards Ethereum and other blockchain structures supporting stablecoin transactions for ongoing liquidity and network activity.

The Treasury’s forecast reflects confidence in institutional capital flows into stablecoins, with regulatory clarity fostering mainstream financial integration. At this juncture, no direct responses from high-profile crypto leaders have emerged. However, broader market sentiment anticipates positive impacts on DeFi protocols, network activities, and the wider adoption of stablecoin-based solutions. The outlook hints at expanding a digital economy backed by stable, regulated financial instruments.