Coinbase forecasts that the total US dollar-pegged stablecoin market will grow to $1.2 trillion by 2028, driven by comprehensive crypto regulations in the United States. In order to meet the demand from stablecoin issuers, who utilize short-term US Treasury bills as collateral, the US Treasury would need to issue $5.3 billion per week over the next three years. This issuance is expected to cause only a minor and temporary drop in three-month Treasury yields by about 4.5 basis points, rather than the drastic changes previously anticipated by analysts. The upcoming regulatory framework for stablecoins in the US is expected to significantly impact the market, prompting other countries to consider establishing their own stablecoins to compete with the US dollar. Market data indicates that private stablecoin issuers such as Tether and Circle have outpaced traditional economies in purchasing US government debt. In parallel, countries like South Korea and China are contemplating their stablecoin frameworks, with a South Korean regulatory bill set for discussion and potential developments on a yuan stablecoin in China.

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