Coinbase Predicts Stablecoin Market Could Reach $1.2 Trillion by 2028

Crypto exchange Coinbase projects that the total market for U.S. dollar‑pegged stablecoins could expand to roughly $1.2 trillion by 2028, driven largely by clearer and more comprehensive U.S. regulatory frameworks that encourage adoption.

To back that level of stablecoin supply, Coinbase estimates that stablecoin issuers would need about $5.3 billion of short‑term U.S. Treasury issuance per week over the following three years. The report says accommodating that demand would likely cause only a small, temporary decline in three‑month Treasury yields—on the order of a few basis points—rather than a large, permanent disruption to government debt markets.

Coinbase identifies the passage of a comprehensive U.S. stablecoin bill (referred to in the report as a key regulatory milestone) as a catalyst for growth, and treats policy‑enabled adoption as the primary mechanism by which stablecoins would scale rather than extreme market dislocations.

The analysis also notes that private stablecoin issuers such as Tether and Circle have become significant buyers of U.S. government debt, in some cases outpacing purchases by entire countries, and that this trend is already visible in stablecoin market activity.

Outside the United States, regulators and governments are signaling interest in their own stablecoin initiatives: for example, South Korea’s financial regulator has said a comprehensive stablecoin bill will be submitted to the legislature for consideration in October, and reports indicate China may permit yuan‑backed stablecoins to circulate in limited contexts such as special economic zones or cross‑border markets.

Overall, Coinbase argues that dollar‑denominated stablecoins remain dominant today, but international developments and new legal frameworks could broaden the market, pushing stablecoins into a multi‑trillion‑dollar era if regulatory momentum continues.