U.S. Officials Predict Stablecoins Could Grow Up to 8×, Exceeding $2 Trillion by 2028

Treasury Secretary Scott Bessent and SEC officials are forecasting a major boom in the stablecoin market—with potential to reach more than $2 trillion in total market cap by 2028, roughly an eight-fold increase from today's ~$250 billion.

Coinccino

Jun 13, 2025 - 13:20

Key drivers include:

Federal Regulation on the Horizon: The GENIUS Act, currently moving through the Senate, would require stablecoins to be fully backed by liquid assets—primarily U.S. dollars and short-term Treasury bills.
Treasury Bill Demand Surge: Major issuers like Tether and Circle already hold over $166 billion in U.S. Treasuries. As stablecoin issuance grows, so would demand for these government-backed securities. According to Reuters, this expansion “could shake up” the U.S. Treasury market—raising questions about liquidity and price stability if rapid liquidation occurs.
Dollar’s Reserve Status Reinforced: Bessent highlighted that regulated growth of stablecoins could further global adoption of the U.S. dollar through programmable payment systems.
Financial System Risks & Benefits: While proponents see this as a way to improve bond issuance mechanisms, critics warn of risks—like Treasury market turbulence, strained bank deposits, and pressure on money-market funds during stressed conditions

Legitimacy & Stability: Federal safeguards—like regular reserve disclosures and high liquidity backing—will boost confidence in digital dollars for wider use.
Institutional Flow-on Effects: Rising demand for Treasury bills from stablecoin issuers could reshape interest rates and bond issuance strategies.
Economic Trade-Offs: Although stablecoin growth could aid fiscal funding needs, it may also disrupt traditional banking and money markets.