{"id":172221,"date":"2025-08-24T17:23:10","date_gmt":"2025-08-24T17:23:10","guid":{"rendered":"https:\/\/www.europesays.com\/us\/172221\/"},"modified":"2025-08-24T17:23:10","modified_gmt":"2025-08-24T17:23:10","slug":"stablecoin-market-on-track-to-hit-1-2tn-after-coinbase-maps-20000-ways-to-get-there-dl-news","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/us\/172221\/","title":{"rendered":"Stablecoin market on track to hit $1.2tn after Coinbase maps 20,000 ways to get there \u2013 DL News"},"content":{"rendered":"<ul class=\"list-outside pl-8\">\n<li>Coinbase projects stablecoins could reach $1.2 trillion by 2028.<\/li>\n<li>The US\u2019 Genius Act is seen as a major driver of growth in stablecoins.<\/li>\n<\/ul>\n<p class=\"puppeteer-article-text-type-element\">After running 20,000 simulated growth paths, Coinbase has found what it sees as the most likely outcome: stablecoins swelling into a $1.2 trillion market by 2028.<\/p>\n<p class=\"puppeteer-article-text-type-element\">The <a href=\"https:\/\/www.linkedin.com\/posts\/david-duong-cfa_stablecoins-activity-7365161690415472640-oAl1\/\" rel=\" nofollow noopener\" target=\"_blank\">forecast<\/a> comes from Coinbase Institutional, which ran simulations using recent monthly growth data to estimate how the market could evolve over the next few years. <\/p>\n<p class=\"puppeteer-article-text-type-element\">Rather than what Coinbase\u2019s head of research, David Duong, called a \u201cfinger in the air\u201d guess at how much of the world\u2019s money stablecoins might eventually absorb, Coinbase based its model on the real-world pace of adoption so far. <\/p>\n<p class=\"puppeteer-article-text-type-element\">Duong said the result is \u201cboth realistic and consistent with our front-end rates model,\u201d a way of testing how stablecoin growth might interact with short-term interest rates.<\/p>\n<p class=\"puppeteer-article-text-type-element\">Though getting from today\u2019s <a href=\"https:\/\/defillama.com\/stablecoins\" rel=\"noopener\" target=\"_blank\">$276 billion<\/a> to $1.2 trillion would require steady demand, equivalent to about $5.3 billion flowing into short-term US government debt each week.<\/p>\n<p><a name=\"j8ren2oq3zjahfz\"\/>Stablecoin market cap. Source: DefiLlama<\/p>\n<p class=\"puppeteer-article-text-type-element\">That\u2019s because stablecoin issuers like Tether and <a href=\"https:\/\/www.dlnews.com\/articles\/markets\/circle-stock-rout-will-get-worse-with-rate-cuts-and-slow-growth-analysts-say\/\" rel=\"noopener\" target=\"_blank\">Circle<\/a> typically back their tokens with <a href=\"https:\/\/www.dlnews.com\/articles\/markets\/ondo-finance-launches-us-treasury-token-on-sei\/\" rel=\"noopener\" target=\"_blank\">assets like Treasury bills<\/a> \u2014 short-term loans the government takes out to raise cash, which are usually repaid within a year.<\/p>\n<p class=\"puppeteer-article-text-type-element\">Every time new stablecoins are created, issuers typically buy more of these bonds to hold in reserve.<\/p>\n<p class=\"puppeteer-article-text-type-element\">A $1.2 trillion stablecoin market is a conservative projection compared to other analyses. <\/p>\n<p class=\"puppeteer-article-text-type-element\">Four months ago, Standard Chartered forecasted that the stablecoin supply could surge to <a href=\"https:\/\/www.dlnews.com\/articles\/markets\/genius-act-driving-stablecoin-supply-2-trillon-2028\/\" rel=\"noopener\" target=\"_blank\">$2 trillion by 2028<\/a>, citing favourable regulation under the <a href=\"https:\/\/www.dlnews.com\/articles\/regulation\/why-banks-hold-the-key-to-the-genius-acts-breakthrough\/\" rel=\"noopener\" target=\"_blank\">Genius Act<\/a>. <\/p>\n<p class=\"puppeteer-article-text-type-element\">Even more bullish is Bitwise\u2019s chief investment officer Matt Hougan, who in May predicted the market could hit <a href=\"https:\/\/www.dlnews.com\/articles\/markets\/genius-act-to-trigger-usd2tn-stablecoin-bonanza-bitwise-says\/\" rel=\"noopener\" target=\"_blank\">$2.5 trillion<\/a> \u201cin no time\u201d as firms like JPMorgan, Visa, and Bank of America move in. <\/p>\n<p class=\"puppeteer-article-text-type-element\">Others, like Keyrock and Bitso, have also projected fast growth, estimating that <a href=\"https:\/\/www.dlnews.com\/articles\/markets\/stablecoins-to-reach-12-percent-global-payments-by-2030\/\" rel=\"noopener\" target=\"_blank\">stablecoins could power<\/a> $1 out of every $8 in cross-border payments by 2030.<\/p>\n<p><b>Crypto market movers<\/b><\/p>\n<ul class=\"\">\n<li>Bitcoin has lost 0.7% in value in the past 24 hours and is trading at $114,740.<\/li>\n<li>Ethereum is up 0.8% in the same period to $4,760.<\/li>\n<\/ul>\n<p><b>What we\u2019re reading<\/b><\/p>\n<p class=\"puppeteer-article-text-type-element\">Kyle Baird is DL News\u2019 Weekend Editor. Got a tip? Email at <a href=\"https:\/\/kbaird@dlnews.com\/\" rel=\" nofollow noopener\" target=\"_blank\">kbaird@dlnews.com<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"Coinbase projects stablecoins could reach $1.2 trillion by 2028. The US\u2019 Genius Act is seen as a major&hellip;\n","protected":false},"author":3,"featured_media":172222,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13],"tags":[64,51407,135,37260,67,132,68],"class_list":{"0":"post-172221","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-markets","8":"tag-business","9":"tag-coinbase","10":"tag-markets","11":"tag-stablecoin","12":"tag-united-states","13":"tag-unitedstates","14":"tag-us"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@us\/115084906156720108","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/172221","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/comments?post=172221"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/172221\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/172222"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=172221"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=172221"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=172221"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}