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Stablecoin Market Could Hit $2T by 2028

Stablecoin Market Could Hit $2T by 2028

Steven Harper • May 1, 2025

Key Takeaways

U.S. Department of the Treasury forecasts stablecoin market volume could reach up to USD 2 trillion by 2028.
Current market capitalization stands at approximately USD 239 billion.
Stablecoins are increasingly seen as legitimate means of payment and investment vehicles.
The growth of stablecoins could have a positive impact on the price of Bitcoin.

Strong Growth Potential for Stablecoins

The U.S. Department of the Treasury expects the stablecoin market — digital currencies typically pegged to the U.S. dollar — to grow to as much as USD 2 trillion by 2028. Currently, market capitalization is around USD 239 billion, according to CoinMarketCap. This projection is based on the assumption that regulatory frameworks will be established to promote trust and stability.

Stablecoins as a New Payment Infrastructure

In its report, the Treasury refers to stablecoins as a “new payment mechanism” and a “growing source of demand” for U.S. government bonds. This is due to proposed legal requirements that would require stablecoin issuers to hold reserves in the form of government bonds — potentially increasing demand for these securities.

Risks for Traditional Banks

At the same time, the report warns of potential risks to banks. Yield-generating stablecoins — those that offer interest — could compete with traditional bank deposits. This may further challenge the role of conventional financial institutions.

Impact on Bitcoin Price

According to Tracy Jin, COO of crypto exchange MEXC, fiat deposits are increasingly flowing into stablecoins like Tether (USDT) and USD Coin (USDC) before being converted into Bitcoin (BTC). She notes that for every additional USD 1 billion increase in the stablecoin market, the price of Bitcoin tends to rise by 8 to 10 percent. This correlation is evident over the long term, even if short-term deviations occur.

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Current Market Developments

Between January and April 2025, the USDT market grew from USD 137 billion to USD 148 billion. USDC rose from USD 43 billion to USD 62 billion during the same period. Despite this growth, the price of Bitcoin increased by only 1.7 percent. This suggests that stablecoins are increasingly being used for other purposes — such as cross-border payments or as a form of digital savings.

Stablecoins Beyond the Crypto Market

According to venture capital firm a16z, stablecoins are at a turning point. They describe it as a “WhatsApp moment for money.” This refers to the growing use of stablecoins outside of speculation — for example, in international transactions or as a digital payment method in everyday life. This trend could make stablecoins more independent from the broader crypto market in the long run.

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Our Assessment

Stablecoins are increasingly becoming an integral part of the global financial system. The projected growth to as much as USD 2 trillion by 2028 is realistic — provided there is regulatory clarity. For crypto enthusiasts, this means stablecoins are more than just tools for price stability. They could play key roles in payments and digital asset management in the future. While Bitcoin may benefit from this trend, it may not necessarily rise in lockstep with stablecoin growth. It’s worth keeping a close eye on this sector.

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Symbol	BTC
Coin type	Alt Coin
Transaction Speed	Slow
Pros	First cryptocurrency, therefore very widespread Largest selection of casinos among the coins Many BTC based bonus offers
Cons	Fairly low transaction speed
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Price	$96,639.00
24h %	2.92 %
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Market Cap	$1,917,927,131,212.00
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