Stablecoins Market Cap to Reach $2 Trillion by 2028

US dollar-pegged stablecoins are projected to reach a combined market capitalization of around $2 trillion by 2028, according to the United States Department of the Treasury’s Q1 2025 report.

Currently, the total market cap of stablecoins is close to $230 billion, but the Treasury noted in its April 30 report that “[e]volving market dynamics [have] the potential to accelerate stablecoins’ trajectory to reach ~$2tn in market cap by 2028.”

Stablecoins are digital assets whose value is linked to traditional currencies like the US dollar.

The Treasury pointed out that these tokens are already “ubiquitously utilized as ‘cash on-chain,’ effectively serving as a new payment mechanism.”

The report also highlighted that “tokenized [money market funds]” have emerged as a competing option to stablecoins due to their interest-earning capabilities.

This latest report reflects the US government’s continued interest in blockchain technology, particularly since US President Donald Trump began his second term on January 20.

Back in December, the Treasury expressed support for crypto, stating that the technology could lead to a “new financial market infrastructure,” which may increase global demand for US Treasury bills.

Stablecoins like USDT and USDC typically invest the fiat reserves backing them into assets like US Treasurys.

“[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,” the Treasury said in December.

In its April update, the Treasury stated that upcoming legislation on stablecoins would “require stablecoin issuers to hold [short-dated] T-bills,” reinforcing the connection between stablecoin growth and demand for US government debt.

The report also observed that the expansion of stablecoins might push retail banks to offer higher interest rates in order to stay competitive with digital alternatives.

As of April 25, Tether’s USDT remains the leading stablecoin, holding about 66% of the market, according to a report by Web3 researcher Nansen.

Data from CoinGecko shows that USDT has a market cap of roughly $150 billion.

In second place is Circle’s USDC, with a market cap of around $60 billion as of April 30.

Sources:

https://cointelegraph.com/news/stablecoins-on-track-for-2-t-market-cap-by-2028-us-treasury

https://home.treasury.gov/system/files/221/TBACCharge2Q22025.pdf

https://cointelegraph.com/news/tether-still-dominant-despite-competition-nansen