US Treasury Secretary Declares a $2 Trillion Market Cap for Pegged Stablecoins Is Not Only Feasible – It's Within Reach

On June 11 2025, U.S. Treasury Secretary, Scott Bessent, declared that a $2 trillion market capitalization for U.S. dollar–pegged stablecoins is not only feasible – it’s within reach.

U.S. Treasury Secretary Scott Bessent has stated that a $2 trillion market capitalization for U.S. dollar-pegged stablecoins is not only feasible, but also within reach.

Speaking at the White House Crypto Summit, Bessent argued that a predictable regulatory framework would catalyze adoption, fuel broader capital inflows, and reinforce the global dominance of the U.S. dollar.

“We have a real shot at seeing $2 trillion in stablecoins by 2028,” Bessent said.

“That will put them on par with the world’s largest asset class—no small feat considering where stablecoins started just a few years ago.”

Explode As Treasury Demand Surges

The stablecoin market, presently valued at roughly $247 billion as of May 2025, has surged more than 50% year-over-year.

New supply jumped by over $30 billion in Q1 2025 alone, hitting record highs even while broader crypto markets remained subdued as reported by BitKE.

MILESTONE | #Stablecoin Supply Skyrockets by $30B in Q1 2025 Reaching New All-Time Highs – #Ethereum Remains the Epicenter

Ethereum processed over $3 trillion in stablecoin transactions on its mainnet in Q1 2025 alone.https://t.co/yYw5KP11os

— BitKE (@BitcoinKE) April 5, 2025

Ethereum remains the epicenter of stablecoin activity, processing more than $3 billion in stablecoin transactions in just the first quarter of 2025. The number of unique stablecoin addresses on the chain surpassed 200,000 in March 2025.

Global Use Cases: From Trading to Everyday Payments

Originally tools for crypto-trading (still accounting for around 88% of stablecoin use), these digital dollars are now breaking into real-world payments and remittances.

In emerging markets – especially across Africa, Latin America, and South Asia – stablecoins have become a vital alternative to unstable local fiat. As documented by BitKE, they represent nearly half of crypto usage in regions like Nigeria, Ethiopia, Ghana, and South Africa – at times making up ~43% of all crypto transaction volume in sub-Saharan Africa.

Institutions Are Key As Legislators Push For Liquid, Fully Backed Reserves

Stablecoin issuers like Tether and Circle now hold over $166 billion in U.S. Treasuries—primarily short-term bills.

Legislative efforts, such as the U.S. Senate’s “GENIUS Act,” would cement a requirement for these reserves to be liquid and fully backed—encouraging issuers to increase their Treasury holdings.

Analysts now forecast stablecoin growth to reach the $2 trillion mark by 2028, largely driven by regulatory clarity propelling adoption and Treasury demand. JP Morgan even suggests stablecoin issuers could rank among the top three purchasers of Treasury bills in just a few years.

While proponents envision a stablecoin-backed surge in government debt demand, analysts warn that rapid sell-offs—perhaps triggered by a confidence crisis—could depress Treasury prices and disrupt both bond and banking markets.

Exploding Growth But Illicit Use Remains A Concern

Along with explosive growth and real-world utility come well-known risks. Chainalysis reports that in 2024, over 60% of illicit crypto activity used stablecoins, making them a focal point for money-laundering and darknet markets.

The largest stablecoin, Tether (USDT), remains prominent—holding more than $114 billion in circulation—but has drawn regulatory scrutiny over reserve insufficiencies, culminating in a $41 million fine.

Path To $2 Trillion

Several powerful forces are converging to push stablecoins toward Bessent’s target:

* U.S. administrative bodies, such as the Treasury Department and the Securities and Exchange Commission, have largely completed their regulatory frameworks for cryptocurrencies.

* These rules are designed to encourage innovation while safeguarding financial stability—a balance that has taken time to achieve.

* As institutions gain familiarity with digital assets and relevant legislation is finalized, broader capital is expected to flow into the space.

* A surge in institutional capital will be key to propelling stablecoins toward the $2 trillion market capitalization that Bessent foresees.

* Moreover, these funds will largely channel into U.S. credit markets, converging with the broader macro landscape.

Bessent’s bold statement isn’t mere rhetoric—it reflects a tangible trajectory. Stablecoins have evolved from a niche trading convenience into a robust financial infrastructure with global reach. Anchored by institutional capital, bolstered by clear regulation, and entrenched in everyday finance, they are poised to become a $2 trillion asset class.

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