Coinbase Predicts Trillion-Dollar Stablecoin Era by 2028

Crypto exchange Coinbase forecasts a trillion-dollar market for US dollar-pegged stablecoins by 2028, driven by the anticipated regulatory environment in the United States. The projection suggests a massive need for Treasury issuance to meet the growing demand from stablecoin issuers who utilize short-term US Treasury bills as collateral for their digital fiat tokens. This issuance will cause a minor and temporary decrease in three-month Treasury yields of around 4.5 basis points (BPS). However, this prediction doesn’t rely on large or permanent interest rate changes, but rather on incremental adoption spurred by policy changes.