The US stablecoin market could surpass $2 trillion in total market capitalization by the end of 2028, according to Treasury Secretary Scott Bessent. Speaking during a Senate Appropriations Committee hearing on Wednesday, Bessent said legislation like the GENIUS Act could dramatically expand the adoption of USD-backed stablecoins, both domestically and worldwide.
At present, dollar-linked stablecoins account for over $246.9 billion, representing more than 96% of the global stablecoin market. Bessent believes that with the right regulatory framework, this number could increase tenfold in the next three years.
“Stablecoin legislation backed by US Treasuries or T-bills will create a market that will expand US dollar usage via these stablecoins all around the world,” Bessent said . “I think $2 trillion is very reasonable, and I could see it greatly exceeding that.”
The comments come on the same day the Senate voted to advance the GENIUS Act , a landmark stablecoin bill that mandates full backing by US dollars or liquid assets. The bill also requires stablecoin companies with a market value of over $50 billion to go through yearly audits. It also puts clear rules in place for stablecoins issued outside the U.S.
President Donald Trump has backed the GENIUS Act and says he wants to officially sign it into law before August 2025.
Strengthening the US Dollar Through Digital Innovation
Bessent, who formerly worked in foreign exchange and hedge fund strategy, emphasized that stablecoins could serve as a new mechanism to strengthen the dollar’s global reserve status.
“In the history of the US dollar as a reserve currency, there have been many moments when its status was questioned. But each time, new dynamics helped reaffirm its strength,” he noted.
The Treasury Secretary believes USD stablecoins are the next key driver in enhancing the dollar’s dominance across global markets. Backing these digital tokens with high-quality assets like US Treasury bills would offer investor confidence and promote global adoption of digital dollars.
The stablecoin market is heating up fast. Circle, the company behind USDC, just went public, and its stock skyrocketed by 235% on day one . Meanwhile, major players like Bank of America are preparing to launch their stablecoins now that the regulatory picture is finally starting to clear up.
Citigroup’s Take on Stablecoin-Driven Treasury Demand
Although Bessent’s $2 trillion projection is optimistic, it’s not entirely out of sync with financial institutions. Citigroup analysts earlier this year projected that stablecoin issuers could purchase over $1 trillion in US Treasuries by 2030, even under more conservative scenarios.
As more people around the world start using digital dollar stablecoins, especially in countries where local currencies are unstable, the GENIUS Act could give the U.S. a major advantage in shaping the future of global finance.
