Coinbase Projects Stablecoin Market to Reach $1.2 Trillion by 2030

The US dollar-pegged stablecoin market is anticipated to expand to $1.2 trillion by 2028, driven by in-depth crypto regulations in the United States, as per a report from crypto exchange Coinbase.

According to Coinbase stated, this growth means the US Treasury would need to issue $5.3 billion weekly over the next three years to meet the demands of stablecoin issuers, who utilize short-term US Treasury bills as collateral for their digital fiat tokens.

This schedule would likely result in a small, temporary decrease in three-month Treasury yields of approximately 4.5 basis points (BPS), which contradicts predictions that stablecoin issuer demand will substantially lower the interest on US government debt. Coinbase noted:

“We believe the forecast does not necessitate unrealistically large or permanent rate dislocations; rather, it hinges on gradual, policy-driven adoption compounding over time.”

The introduction of the GENIUS bill, a comprehensive regulatory framework for stablecoins in the US set to take effect in January 2027, serves as a catalyst for the stablecoin market’s growth, according to Coinbase.

However, US legislative actions have prompted other nations to contemplate legalizing their stablecoins to stay competitive with the dollar in the digital landscape.

Related: US Treasury seeks public feedback on GENIUS stablecoin bill

Stablecoin sector expands as other nations join the race

Private stablecoin providers such as Tether and Circle have emerged as leading purchasers of US government debt, surpassing countries like South Korea, the United Arab Emirates (UAE), and Germany.

While dollar-denominated stablecoins have dominated the landscape, other nations are beginning to explore stablecoin solutions to complement their traditional fiat currencies.

South Korea’s Financial Services Commission (FSC) has announced plans to submit a comprehensive stablecoin regulatory bill to the legislature for consideration in October.