SAN FRANCISCO — The stablecoin market, currently valued at $270 billion, could surge nearly fivefold to $1.2 trillion by 2028, according to a new forecast from cryptocurrency exchange Coinbase, as reported by Cointelegraph on August 23, 2025. This growth, fueled by increasing adoption and clearer U.S. regulations, could reshape financial markets. Coinbase projects that stablecoin issuers, like Tether and Circle, will need to buy $5.3 billion in U.S. Treasury bills weekly to back these digital tokens, which are tied to the U.S. dollar.
The report, released Thursday, highlights the GENIUS Act, a regulatory framework set to take effect in January 2027, as a key driver. “We think the forecast doesn’t require unrealistically large or permanent rate dislocations,” Coinbase noted, per Cointelegraph, suggesting that gradual, policy-driven adoption will fuel the boom. The demand could slightly lower three-month Treasury yields by about 4.5 basis points, a modest impact on the $6 trillion money market.
Key points from Coinbase’s projection include:
- Treasury Demand: $5.3 billion weekly purchases to support stablecoin reserves.
- Regulatory Boost: The GENIUS Act mandates full reserves and audits.
- Global Impact: Other nations, like South Korea, are exploring their own stablecoins.
However, risks remain. A sudden $3.5 billion redemption in five days could force issuers to sell Treasuries, tightening liquidity, per CoinDesk. Posts on X, like those from @Crypto_Potato, note excitement over stablecoins’ growth but caution about yield impacts. As stablecoin issuers outpace countries like Germany in buying U.S. debt, their influence on global finance grows. The forecast signals a new era where digital currencies could challenge traditional financial systems.
Source: Cointelegraph
