{"id":1533690,"date":"2025-05-02T11:20:00","date_gmt":"2025-05-02T15:20:00","guid":{"rendered":"https:\/\/bugaluu.com\/news\/?p=1533690"},"modified":"2025-05-02T11:20:00","modified_gmt":"2025-05-02T15:20:00","slug":"stablecoins-on-track-for-2-trillion-market-cap-by-2028-us-treasury","status":"publish","type":"post","link":"https:\/\/bugaluu.com\/news\/stablecoins-on-track-for-2-trillion-market-cap-by-2028-us-treasury\/1533690\/","title":{"rendered":"Stablecoins On Track For $2 Trillion Market Cap By 2028: US Treasury"},"content":{"rendered":"

Stablecoins On Track For $2 Trillion Market Cap By 2028: US Treasury<\/span><\/p>\n

\n

Authored by Alex O’Donnell via CoinTelegraph.com,<\/em><\/a><\/p>\n

US dollar-pegged stablecoins are on track to reach an aggregate market capitalization of approximately $2 trillion by 2028, according to the United States Department of the Treasury\u2019s Q1 2025 report.<\/strong><\/p>\n

<\/a><\/p>\n

Stablecoins\u2019 cumulative market cap currently stands at roughly $230 billion, but \u201c[e]volving market dynamics [have] the potential to accelerate stablecoins\u2019 trajectory to reach ~$2tn in market cap by 2028,\u201d<\/strong> the Treasury\u00a0said<\/a>\u00a0in the April 30 report.\u00a0<\/p>\n

A stablecoin is a cryptocurrency whose value is pegged to a traditional asset like the US dollar. According to the report, such tokens are already \u201cubiquitously utilized as \u2018cash on-chain,\u2019 effectively serving as a new payment mechanism.\u201d<\/p>\n

Additionally, the emergence of \u201ctokenized [money market funds] has recently created an alternative option to stablecoins, primarily given their yield-bearing feature,\u201d the report reads.<\/p>\n

<\/a><\/p>\n

Treasury on stablecoins\u2019 impact. Source:\u00a0<\/em>US Treasury<\/em><\/a><\/p>\n

Embracing tokenization<\/h2>\n

The report is the latest example of how the US government is embracing blockchain technology, especially after US President Donald Trump commenced his second term of office on Jan. 20.\u00a0<\/p>\n

The Treasury previously\u00a0endorsed cryptocurrency in December<\/a>, noting that the technology promises to create a \u201cnew financial market infrastructure,\u201d potentially\u00a0increasing global demand for US Treasury bills<\/a>. US dollar-pegged stablecoins such as Tether and USDC\u00a0 invest fiat backing into yield-bearing instruments such as US Treasurys.\u00a0<\/p>\n

\u201c[B]ecause most stablecoin collateral reportedly consists of either Treasury bills or Treasury-backed repurchase agreement transactions, the growth in stablecoins has likely resulted in a modest increase in demand for short-dated Treasury securities,\u201d <\/strong><\/em>the Treasury said in December.<\/p>\n

<\/a><\/p>\n

The current state of stablecoins. Source:\u00a0<\/em>US Treasury<\/em><\/a><\/p>\n

In its April report, the Treasury said that pending stablecoin legislation would \u201crequire stablecoin issuers to hold [short-dated] T-bills,\u201d thus solidifying the link between stablecoin adoption and US Treasury bill demand.\u00a0<\/p>\n

The report also noted that the proliferation of stablecoins could put pressure on retail banks to pay higher interest rates to depositors.\u00a0<\/p>\n

As of April 25,\u00a0Tether\u2019s USDt is the dominant stablecoin<\/a>, commanding approximately 66% of market share, according to a report by researcher Nansen.\u00a0<\/strong><\/p>\n

The token has a market capitalization of roughly $150 billion,\u00a0according<\/a>\u00a0to CoinGecko. Circle\u2019s USDC ranks second, with a market capitalization of approximately $60 billion as of April 30.<\/p>\n<\/div>\n

Tyler Durden<\/a><\/span>
\nFri, 05\/02\/2025 – 07:20<\/span><\/p>\n

\u200bhttps:\/\/www.zerohedge.com\/crypto\/stablecoins-track-2-trillion-market-cap-2028-us-treasury<\/a>\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"

Stablecoins On Track For $2 Trillion Market Cap By 2028: US Treasury Authored by Alex O’Donnell via CoinTelegraph.com, US dollar-pegged stablecoins are on track to…<\/p>\n","protected":false},"author":0,"featured_media":1533691,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1533690","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","wpcat-1-id"],"_links":{"self":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1533690","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/comments?post=1533690"}],"version-history":[{"count":0,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1533690\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media\/1533691"}],"wp:attachment":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media?parent=1533690"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/categories?post=1533690"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/tags?post=1533690"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}