Coinbase analysts predict that the stablecoin market could expand to $1.2 trillion by 2028, up from its current size of $270 billion. This growth is projected to translate into approximately $5.3 billion in new weekly purchases of U.S. Treasury bills, potentially affecting yields which may decrease by 2-4 basis points over time. Stablecoins, which are digital currencies pegged mostly to fiat currencies like the U.S. dollar, rely on policy-enabled adoption for this significant growth. However, large withdrawal events could also strain traditional financial markets, possibly necessitating forced sales of T-bills. The recently enacted GENIUS Act, effective in 2027, imposes reserves and audit requirements on stablecoin issuers, aimed at reducing risks associated with financial instability in the sector.,

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