US-based cryptocurrency exchange Coinbase anticipates a significant surge in the stablecoin market cap, which could touch $1.2 trillion by 2028, a 300% rise from the current level.
What Happened: The forecast is based on a model that considers factors such as the volume of US Treasuries issued, as stablecoins are typically backed by US dollars or Treasuries.
As per Coinbase’s report, this growth doesn’t necessitate large or permanent rate dislocations, but rather hinges on incremental, policy-enabled adoption compounding over time.
Coinbase asserts that the market for dollar-pegged crypto assets is at a crucial juncture and adoption could speed up.