The post Will Stablecoins Hit $2 Trillion? Inside US Treasury’s Bold 10x Projection appeared on BitcoinEthereumNews.com.

Crypto enthusiasts might vividly remember how, just a fortnight ago, Standard Chartered Bank forecast that the stablecoin market would see unprecedented growth over the coming years to reach $2 trillion from the current capitalization of $230 billion. While it may have sounded like a wishful estimate by a private bank back then, now the US Treasury has also backed these projections. Stablecoins to Reach $2 trillion by 2028 In a presentation released on April 30, the U.S. Treasury Department cited the Standard Chartered study. Reiterating the projections, the Treasury Department suggested that the supply of dollar-backed stablecoins could swell from today’s roughly $240 billion to nearly $2 trillion by 2028. Stablecoins are cryptocurrencies pegged one-for-one to fiat money (usually the dollar). While the hottest crypto assets like Bitcoin, XRP, and Solana steal the spotlight most often, stablecoins have indeed grown quietly, and yet rapidly. As of May 1, their total market capitalization has grown to about $242 billion, up roughly 45-fold since 2019, as per the open-source platform DefiLlama. The explosive projections, if they turn true, would likely require an additional $1.6 trillion to be held in reserve by stablecoin issuers. A part of the Treasury presentation notes that broader stablecoin use could pull “non-USD liquidity holdings into USD”, likely reinforcing the greenback’s dominance. But could stablecoins truly become a defining force in U.S. fiscal and monetary infrastructure? That would mean them influencing monetary policy, government debt, payment use cases, and the global role of the dollar. However, emerging global initiatives like China’s digital yuan and India’s digital rupee may offer some competition. Can Stablecoins See Wider Adoption? Stablecoins are used mainly as trading vehicles on cryptocurrency exchanges, as proxies for dollars in digital finance, and increasingly for remittances and cross-border transfers. Major payment firms and banks have taken notice: for example, Visa announced…

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Filed under: News - @ May 2, 2025 4:15 am