US Treasury Predicts Stablecoins to Hit $2 Trillion by 2028: A New Era for Banks and the Financial System

US Treasury Department

The US Treasury Department predicts that the market capitalization of stablecoins will grow from $230 billion to $2 trillion by 2028 due to regulation, increased demand, asset tokenization, and interest from institutional investors.

Key findings of the report:

• The increase in stablecoin volumes could increase demand for short-term US bonds, as they are used as collateral.
• When interest is accrued, such assets can attract deposits from banks.
• Even without charging interest, banks are losing liquidity due to the convenience and availability of stablecoins.
• The banks’ possible reaction to this is to raise interest rates or look for new sources of financing.
• Stablecoins are becoming competitors for banks, a tool for dollar export and a catalyst for the transformation of the financial system.

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