Coinbase Projects Stablecoin Market to Hit $1.2 Trillion by 2028

Coinbase has forecasted that the stablecoin market could reach a staggering $1.2 trillion by 2028, signaling a major shift in the global financial landscape [1]. This prediction is rooted in the growing adoption of stablecoins—tokens pegged to traditional fiat currencies like the U.S. dollar—as a reliable means of facilitating fast, predictable, and low-volatility transactions across both retail and institutional markets [2]. The firm attributes this projected growth to the increasing regulatory clarity in the U.S. and the compounding effects of policy-enabled adoption over time [3].

To support this expansion, stablecoin issuers are expected to require $5.3 billion in U.S. Treasury bill issuance per week over the next three years, as these short-term government securities are commonly used as collateral for stablecoin reserves [1]. While this demand may lead to a minor and temporary drop in three-month Treasury yields—estimated at 4.5 basis points—Coinbase argues that the impact will not require unrealistic or permanent rate dislocations to occur [4]. Instead, the firm emphasizes the gradual and incremental nature of stablecoin adoption.

A key catalyst for this projected market expansion is the passage of the GENIUS Act, a comprehensive regulatory framework for stablecoins in the U.S., which is expected to take effect in January 2027 [1]. Such legislation is anticipated to provide the necessary legal clarity for stablecoin operators and encourage broader institutional participation. At the same time, the regulatory developments in the U.S. have prompted other countries to consider implementing their own stablecoin frameworks to remain competitive in the digital currency arena [1].

The U.S. dollar remains the dominant stablecoin peg, but other nations are exploring the creation of stablecoins tied to their own currencies. For example, South Korea’s Financial Services Commission is preparing to submit a regulatory bill for stablecoins to its legislature by October [1]. Meanwhile, China, which has long maintained a cautious stance toward privately issued digital money, has reportedly signaled openness to allowing yuan-backed stablecoins in certain markets, potentially limited to special economic zones or international currency hubs [1].

Private stablecoin issuers like Tether and Circle have already surpassed the investment appetites of entire countries, becoming among the largest buyers of U.S. government debt in 2025 [1]. This shift highlights the growing financial weight of the stablecoin sector and its potential to influence traditional capital markets. Analysts note that as the tokenized asset market expands—projected to grow from $250 billion in 2025 to $2 trillion by 2028—stablecoins will play a foundational role in the broader digital financial infrastructure [5].

Goldman Sachs has also weighed in on the evolving landscape, acknowledging that stablecoins could soon represent trillions of dollars in value [8]. While timelines vary across firms, the general consensus is that stablecoins are set to become a central component of the next phase of financial innovation.

Sources:

[1] https://coinmarketcap.com/community/articles/68a8b01b7f87fa0d9a29edd0/

[2] https://m.economictimes.com/crypto-news-today-live-21-aug-2025/liveblog/123417173.cms

[3] https://www.coinglass.com/ru/news/539059

[4] https://cryptoslate.com/how-the-us-treasurys-cash-rebuild-could-cap-bitcoin-enthusiasm-through-fall/

[5] https://www.ainvest.com/news/fed-pro-innovation-stance-stablecoins-ai-driven-payments-big-infrastructure-play-2508/

[8] https://coinpedia.org/crypto-live-news/