Stablecoins, primarily spearheaded by Tether’s USDT with its substantial U.S. Treasury bill reserves, are projected to propel the stablecoin market to a $2 trillion valuation by 2028. This growth trajectory is fueled by evolving regulatory frameworks and increasing global adoption of digital dollar alternatives.
Tether’s USDT now anchors approximately 81% of its reserves in U.S. Treasury bills, including $119 billion allocated to T-bills in the first quarter of 2025. This underscores U.S. government securities’ role in maintaining liquidity and price stability for the dominant stablecoin. Market expansion continues rapidly – soaring from a $5 billion capitalization five years ago to $251 billion currently.
Regulatory advancements bolster this momentum, notably the proposed GENIUS Act in the U.S. Senate, aiming to formalize oversight for stablecoin issuers while enhancing consumer safeguards against illicit finance. Treasury Secretary Scott Bessent emphasized that Treasury-backed stablecoins could significantly amplify the dollar’s utility in global remittances and cross-border transactions.
The convergence of institutional confidence, regulatory clarity, and treasury-backed stability positions stablecoins for an eightfold surge by 2028, transforming them into pivotal instruments for global finance.