The post The US Treasury Thinks Stablecoins Could Hit a $2 Trillion Market Cap by 2028 appeared on BitcoinEthereumNews.com.

On-chain tokens fully backed by T-bills and cash reserves, stablecoins emerged as an answer to the volatility of assets like Bitcoin, giving investors an opportunity to escape price instability without cashing out altogether.  Over the last decade, it’s fair to say ‘crypto dollars’ have become a much-needed bridge between the worlds of TradFi and Web3, as well as an efficient way of locking in profits amid the continual flux and flow of the crypto market. Which is why it wasn’t exactly surprising when, last month, the market cap of stablecoins hit an all-time high of $238 billion following 19 months of consecutive gains. Indeed, the market grew by 2.12% in April alone. As reported by CoinDesk Data, non-USD fiat stablecoins were one of the biggest winners, rising 30% to a $533 million market cap. $238 billion is a huge figure, to be sure. But it’s still a fraction of the overall crypto market capitalization of $3.2 trillion. Now, the US Treasury is estimating that stablecoins could reach $2 trillion within the next three years, driving demand for short-term treasuries. Why stablecoins? The utility of stablecoins is easy to appreciate given the hegemony of the US dollar, which is the fiat asset to which most stables are pegged. One of the best use-cases for crypto dollars is for cross-border payments, where both sender and receiver enjoy rapid settlement, low fees, and 24/7 availability.  Some days, stablecoins settle more value than PayPal and Western Union. During the first quarter of this year, the total volume of transactions involving stables also exceeded the total of payments facilitated by Visa. We are not talking about a niche offshoot of the crypto world here. The use of stablecoins in a TradFi context has certainly accelerated their growth. Recently, Mastercard teamed up with OKX and Nuvei…

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Filed under: News - @ May 10, 2025 12:26 am