The U.S. Treasury projects that the stablecoin market, particularly dollar-pegged tokens, could surpass $2 trillion by 2028. This anticipated growth is driven by legislative support and enhanced global integration of the U.S. dollar.
Treasury Secretary Basant emphasized that regulatory clarity and Treasury-backed collateralization are key catalysts for expansion. Proposed legislation aims to establish clear guidelines to boost institutional participation and market confidence.
Plans to back stablecoins with U.S. Treasury securities or short-term bills are expected to enhance credibility and stability, reducing volatility risks. This collateral approach aims to strengthen trust in stablecoin ecosystems.
The initiative seeks to globalize U.S. dollar usage through stablecoins, potentially streamlining cross-border transactions while maintaining American monetary influence in digital finance.
Current market leader Tether (USDT) maintains a $155 billion market capitalization, demonstrating sector resilience amid evolving regulatory landscapes.