Coinbase Says Stablecoins Could Quadruple To $1.2T By 2028

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

In an Aug. 21 report known as ”New Framework for Stablecoin Progress,” Coinbase mentioned the sector’s progress will probably be ”underpinned by an bettering coverage panorama and accelerating adoption tendencies.” The sector’s market capitalization stands at $288.39 billion now, according to CoinMarketCap.

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

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

As stablecoins develop, issuers’ demand for US Treasury payments will soar as nicely. 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.

Non-public stablecoin issuers like Tether and Circle have already grow to be the highest patrons of US authorities debt, even eclipsing nations 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 earth. 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 patrons of US treasuries in 2025 YTD via June 30,” Coinbase wrote.

top stablecoins by market cap

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 can solely decrease 3-month Treasury yields by round 4.5 foundation factors (0.045%).

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

“We expect the forecast doesn’t require unrealistically massive or everlasting charge dislocations to materialize; as a substitute, 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 compelled T-bill promoting.”

Different International locations Pressured To Take into account Legalizing Their Personal Stablecoins

USD-pegged stablecoins have dominated the market to this point, however the signing of the GENIUS Act has compelled different nations to contemplate legalizing their very own stablecoins to stay aggressive with the US within the digital forex race.

As such, South Korea’s Monetary Companies Fee (FSC), a authorities regulator, introduced {that a} complete stablecoin regulatory invoice will probably 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.

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