US Treasury Predicts Stablecoin Market to Reach $2 Trillion

The market capitalization of stablecoins is projected to reach $2 trillion by 2028, according to a report from the US Department of the Treasury for the first quarter of 2025.

The current combined market value of stablecoins is approximately $230 billion, but the growth rate may accelerate, the document states.

The department noted that stablecoins have become a primary tool for transactions in blockchain networks, serving as “digital cash.”

The Treasury also pointed to the emergence of tokenized money market funds, which compete with stablecoins by offering returns to holders.

According to the report, the anticipated stablecoin legislation will require issuers to reserve short-term Treasury bonds. This will strengthen the link between stablecoin adoption and demand for financial instruments, the Treasury emphasized.

The spread of stablecoins will also pressure retail banks to offer higher interest rates to depositors, the department believes.

In April, Citigroup predicted stablecoin market capitalization could grow to $3.7 trillion in five years, while Standard Chartered forecasted ~$2 trillion by 2028.