Coinbase Projects Stablecoin Market to Reach $1.2 Trillion by 2030

The entire market for US dollar-pegged stablecoins is expected to reach $1.2 trillion by 2028, fueled by extensive crypto regulations in the United States, as reported by crypto exchange Coinbase.

Coinbase indicated that these projections suggest the US Treasury would need to issue $5.3 billion weekly over the next three years to meet the demand from stablecoin issuers, who rely on short-term US Treasury bills as backing for their digital fiat tokens.

This issuance plan could lead to a small and fleeting reduction in three-month Treasury yields by approximately 4.5 basis points (BPS), contrary to forecasts by analysts that stablecoin issuer demand would greatly lower interest on US government debt. Coinbase remarked:

“We believe this forecast doesn’t necessitate unrealistically large or permanent rate dislocations; rather, it is based on gradual, policy-driven adoption compounding over time.”

The enactment of the GENIUS bill, a comprehensive regulatory framework for stablecoins in the US set to take effect in January 2027, is a key driver for the expansion of the stablecoin market, according to Coinbase.

However, regulatory developments in the US have prompted other nations to contemplate legalizing their own stablecoins to remain competitive with the dollar in the digital era.

Related: US Treasury seeks public input on GENIUS stablecoin bill

The stablecoin sector expands as other nations signal their entry

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

While dollar-denominated stablecoins have predominantly led the market, other countries are now investigating stablecoins as a complement to their traditional fiat currencies.

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