Cryptocurrency exchange Coinbase has released a report predicting the growth of the stablecoin market to $1.2 trillion by 2028. The report discusses current trends and opportunities within the sector.
Current State of the Stablecoin Market
According to the Coinbase report, the current market capitalization of stablecoins stands at $288.39 billion, with an annual growth rate of approximately 65% since 2021. Transaction volumes have surged to $15.8 trillion for the year-to-date period.
Impact on U.S. Treasury Debt
The demand for stablecoins is projected to increase the need for U.S. Treasury bills. Coinbase states that the Treasury will need to issue around $5.3 billion in new short-term debt each week for the next three years.
Global Trends and Regulatory Changes
The passing of the GENIUS Act has prompted other nations to consider legalizing their own stablecoins. For instance, South Korea's Financial Services Commission plans to submit a comprehensive regulatory bill in October, while China may allow Yuan-backed stablecoins in special economic zones.
The Coinbase report highlights the significance of stablecoins in the global financial system and the need for countries to adapt to new digital conditions.
