$2 Trillion Future: TBAC Report Projects Stablecoins As the Next Big Thing in Finance 

The U.S. Treasury’s Q1 2025 report, released April 30, 2025, projects stablecoins will hit a $2 trillion market capitalization by 2028. 

According to the Treasury Borrowing Advisory Committee (TBAC) report, this represents an 8.5x jump from the current $234 billion market capitalization in 2025. 

Stablecoins Current Market (Source: TBAC Report)

Tether (USDT) leads with a $148 billion market cap, commanding 66% of the market, followed by Circle’s USDC at $61.5 billion.

The projection is based on a growth in volumes of transactions, which is estimated to grow from 700 billion per month to $6 trillion by 2028, according to Standard Chartered’s report released on April 15, 2025.

Also read: Citigroup Sees Stablecoins Powering Financial Evolution

Why Stablecoins Are Winning Over PayPal and Beyond  

Stablecoins’ role as “cash on-chain” for seamless and easy digital payments, coupled with adoption by platforms like PayPal, is proof of their growth. 

The TBAC report points to potential regulatory clarity, such as the proposed GENIUS Act, as a reason for increased adoption. What’s more, Standard Chartered estimates stablecoin transactions could account for 10% of FX spot-market activity by 2028, up from 1% today. 

However, competition from yield-bearing tokenized money market funds remains a challenge, especially for USDT and USDC. The World Economic Forum’s March 2025 report shows stronger USDC adoption in North America, while USDT dominates in Asia and Europe. 

Regulations mandating stablecoin issuers to hold short-dated U.S. Treasury bills are also suggested by the Treasury as a way to raise demand for the securities.

How Stablecoins Could Shake Up Banking  

A $2 trillion stablecoin market could further change the finance system, with the TBAC report suggesting likely pressure on retail banks to raise deposit rates to compete with digital alternatives. 

Also read: Stablecoin Boom: 53% Surge in Active Wallets Signals Massive Adoption

If issuers need to back stablecoins with Treasury bills, this would further tie stablecoin growth with U.S. debt markets, potentially stabilizing value but increasing Treasury demand.

With USDT and USDC accounting for 92% of the current $234 billion market cap, the concentrated market shows the need for strong regulation to reduce risks. 

As stablecoins grow, their integration into global finance is likely to increase, connecting the traditional and digital economies.