Coinbase Says Stablecoins May Quadruple To $1.2T By 2028

US crypto alternate Coinbase predicts the stablecoin market may greater than quadruple by 2028 to achieve $1.2 trillion.

In an Aug. 21 report referred to as ”New Framework for Stablecoin Progress,” Coinbase stated the sector’s progress can be ”underpinned by an enhancing coverage panorama and accelerating adoption developments.” The sector’s market capitalization stands at $288.39 billion now, according to CoinMarketCap. 

Coinbase stated the stablecoin market has grown at a compound annual progress price of roughly 65% since 2021. The typical adjusted transaction volumes have additionally surged to $15.8 trillion for the seven months by July 31, up from $10.3 trillion over the identical interval in 2024, the report stated.

Surging Stablecoin Demand Will Not Push US Treasury Yields Down A lot

As stablecoins develop, issuers’ demand for US Treasury payments will soar as effectively. Coinbase initiatives that the Treasury might want to concern round $5.3 billion of latest short-term debt each week for 3 years straight simply to cater to the demand.

Personal stablecoin issuers like Tether and Circle have already turn out to be the highest consumers of US authorities debt, even eclipsing international locations like South Korea, the United Arab Emirates (UAE), and Germany, the report famous. 

Stablecoins already maintain extra U.S. Treasuries than Germany—the third-largest nationwide financial system on the planet. pic.twitter.com/th1WryeKch

— Bitwise (@BitwiseInvest) August 22, 2025

Tether’s USDT and Circle’s USDC are at present the biggest stablecoins by market cap, and the 2 of them alone “have been the seventh largest consumers of US treasuries in 2025 YTD by June 30,” Coinbase wrote.

Largest stablecoins by market cap (Supply: CoinMarketCap)

Some analysts have expressed issues that the demand from stablecoins will push Treasury yields down a lot decrease, basically making authorities borrowing low-cost. 

However Coinbase argues that whereas the stablecoin demand will push yields down, it should solely decrease 3-month Treasury yields by round 4.5 foundation factors (0.045%).

“Our baseline estimates recommend the affect on 3-month T-bill yields is small in week 1 and grows by weeks 2-3 earlier than petering out,” Coinbase wrote.

“We predict the forecast doesn’t require unrealistically massive or everlasting price dislocations to materialize; as an alternative, it depends on incremental, policy-enabled adoption compounding over time,” the alternate added. 

Coinbase additionally talked about the July signing of the GENIUS Act, which the alternate believes “may scale back the chance that giant redemptions will flip right into a cascade of pressured T-bill promoting.”

Different Nations Pressured To Think about Legalizing Their Personal Stablecoins

USD-pegged stablecoins have dominated the market to date, however the signing of the GENIUS Act has pressured different international locations to contemplate legalizing their very own stablecoins to stay aggressive with the US within the digital foreign money race. 

As such, South Korea’s Monetary Providers Fee (FSC), a authorities regulator, introduced {that a} complete stablecoin regulatory invoice can be submitted to the nation’s legislature in October. 

China has additionally pivoted from its lengthy historical past of opposing cryptocurrencies and privately issued cash when it reportedly signaled that it could permit stablecoins backed by the Yuan to start circulating available in the market. 

Nonetheless, the rollout of any yuan-backed stablecoins would seemingly be restricted to particular financial zones, analysts say.

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