Coinbase forecasts that the US dollar-pegged stablecoin market will reach $1.2 trillion by 2028, supported by comprehensive crypto regulations in the United States. To meet the anticipated demand from stablecoin issuers utilizing short-term US Treasury bills as collateral, a weekly issuance of $5.3 billion in US Treasury is necessary over the next three years. This is expected to cause a slight dip in three-month Treasury yields, counter to analyst predictions of a substantial reduction in interest on US government debt. Furthermore, the upcoming regulatory framework for stablecoins, set to take effect in January 2027, is seen as crucial for market growth. This has prompted other nations, like South Korea and China, to consider launching their own stablecoins to stay competitive with the digital dollar. Notably, private stablecoin issuers have begun to surpass countries such as South Korea and Germany as leading purchasers of US government debt, underscoring the growing influence of stablecoins in the financial landscape.

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