The US stablecoin market is anticipating significant growth fueled by new cryptocurrency regulations.
Projected Growth of Stablecoin Market
According to projections from Coinbase, the dollar-pegged stablecoin market is expected to reach $1.2 trillion by 2028. This is based on the need for $5.3 billion in weekly treasury bond issuances over the next three years to meet the demand from stablecoin issuers.
Impact of Legislation on Demand
The passage of the GENIUS bill, which will take effect in January 2027, is expected to catalyze the growth of the stablecoin market in the US. Coinbase notes that this legislation will compel other countries to consider legalizing their own stablecoins to remain competitive.
Global Trends in Stablecoin Adoption
Private stablecoin issuers like Tether and Circle have emerged as top buyers of US government debt, surpassing nations such as South Korea and the UAE. Countries like South Korea and China are also exploring the issuance of their own stablecoins as a supplement to traditional fiat currencies.
Thus, the growth of the stablecoin market largely depends on legislative initiatives and global trends, presenting new opportunities for digital assets.
