Stablecoin sector forecast to grow eightfold by 2028: Standard Chartered

The stablecoin industry is poised for dramatic expansion, with Standard Chartered forecasting that the sector could grow by approximately eightfold by the end of 2028. According to the bank’s analysis, stablecoins already account for 40% of all blockchain transaction fees, with the Ethereum network alone capturing over half of that share [1]. This growth underscores the growing reliance on stablecoins to facilitate fast, low-cost transactions across digital platforms, reinforcing their role as a cornerstone of the blockchain ecosystem.

The projected expansion aligns with broader industry expectations, though Standard Chartered’s eightfold growth forecast is more aggressive than some other estimates. For example, McKinsey has previously predicted that the total value of issued stablecoins could reach $400 billion by the end of 2025 and potentially surge to $2 trillion by 2028 [2]. These figures highlight the increasing adoption of stablecoins such as USDC and EURC, which are becoming foundational components of the digital economy. Circle Internet Group, a key player in the space, reported $61.37 billion in segregated stablecoin reserves as of Q2 2025, alongside $658.1 million in revenue during the same period [3].

However, the industry's rapid growth comes with challenges, particularly in terms of financial sustainability and regulatory oversight. Circle’s Q2 2025 earnings report revealed a net loss of $482.1 million, largely driven by stock-based compensation expenses linked to its IPO [4]. This indicates that while the sector is expanding, companies must also navigate significant operational and financial complexities.

Regulatory interest in the stablecoin sector is also intensifying. The Federal Reserve and other global regulators have taken a closer look at the potential risks and benefits of widespread stablecoin adoption. The projection of a potential $2 trillion market by 2028, mentioned in a Facebook post and attributed to industry sentiment, reflects the growing recognition of stablecoins as a mainstream financial tool [5]. This shift is further supported by the influence of major players such as Brian Armstrong, CEO of Coinbase, who has emphasized the strategic importance of stablecoins in the future of digital finance.

The increasing use of stablecoins is driven by their ability to reduce transaction costs and enhance the efficiency of cross-border payments. As Standard Chartered’s forecast suggests, stablecoins are not just a niche innovation—they are becoming a critical infrastructure component of the global financial system. The coming years are likely to bring more innovation, regulatory clarity, and competition in the sector.

Sources:

[1] Standard Chartered (internal analysis, not publicly sourced)

[2] FinancialContent, "Circle Internet Group: Pioneering the Digital Dollar Revolution" (https://markets.financialcontent.com/wral/article/marketminute-2025-8-12-circle-internet-group-pioneering-the-digital-dollar-revolution)

[3] StockTitan, "[10-Q] Circle Internet Group, Inc. Quarterly Earnings Report" (https://www.stocktitan.net/sec-filings/CRCL/10-q-circle-internet-group-inc-quarterly-earnings-report-3f1bb4fa2a24.html)

[5] Facebook, “Federal Reserve Chairman Jerome Powell And Bitcoin ...” (https://www.facebook.com/groups/339298295274671/posts/785709943966835/)