tl;dr
The US Department of the Treasury forecasts the stablecoin market could reach a $2 trillion market capitalization by 2028, a sevenfold increase from the current $240 billion. MEXC's COO suggests this milestone may be reached as early as 2026. Key factors driving growth include increased institutiona...
The US Department of the Treasury forecasts the stablecoin market could grow to $2 trillion by 2028, driven by rising institutional interest, merchant adoption, interest-bearing stablecoins, and clearer regulatory frameworks that integrate stablecoins with traditional finance.
Stablecoins are increasingly dominating blockchain transactions, especially USD-pegged tokens like Tether (USDT) and Circle’s USDC, which together hold over 99% of the market cap. This rapid adoption is expected to shift demand away from traditional bank deposits and impact Treasury markets, particularly if legislation such as the GENIUS Act mandates stablecoin issuers to hold US Treasuries as reserves, mitigating risks of de-pegging.
MEXC’s COO predicts the $2 trillion milestone could arrive even sooner, possibly by 2026, thanks to regulatory clarity, sovereign and corporate stablecoin issuance, and their critical role in decentralized finance (DeFi) and cross-border payments. Despite volatility, stablecoins have processed over $33 trillion annually and now represent more than 1% of the global USD M2 money supply.
Institutional interest in crypto ETFs and merchant integrations, like PayPal accepting stablecoins, enhance their practical use as a payment mechanism. Interest-bearing stablecoins add appeal by serving as both a store of value and a yield-generating asset, attracting a broader spectrum of investors.
The Treasury’s perspective highlights that evolving market dynamics and incentives could accelerate stablecoins’ trajectory, encouraging further adoption. If stablecoins continue to grow as expected, they may redefine liquidity, risk management, and payment systems in both crypto and traditional financial markets over the next few years.