Coinbase Forecasts Stablecoin Market Could Reach $1.2 Trillion by 2028, Potentially Quadrupling in Size

Stablecoin Market Growth: Coinbase predicts the stablecoin market could grow to $1.2 trillion by 2028, up from its current market cap of $288.39 billion, driven by improved policies and increasing adoption.

Demand for US Treasuries: The rise in stablecoins will lead to a significant demand for US Treasury bills, with projections indicating the need for $5.3 billion in new short-term debt issuance weekly over three years.

Impact on Treasury Yields: While stablecoin demand may slightly lower 3-month Treasury yields by about 4.5 basis points, Coinbase believes this impact will be minimal and manageable over time.

Global Regulatory Responses: Other countries are considering legalizing their own stablecoins in response to the US's dominance, with South Korea planning new regulations and China signaling potential acceptance of yuan-backed stablecoins.