Stablecoin Market to Hit $2 Trillion by 2028, Boosting Dollar Dominance and Financial Innovation

As global digital finance surges, stablecoins, a cornerstone of the cryptocurrency market, are poised for unprecedented growth. According to a recent analysis by Standard Chartered, the potential passage of a U.S. stablecoin regulatory bill could trigger a dramatic increase in stablecoin supply. By the end of 2028, the global stablecoin market is projected to skyrocket from its current $230 billion to $2 trillion. This forecast not only underscores the pivotal role of stablecoins in the future financial ecosystem but also provides a new pillar for the U.S. dollar’s global dominance.

Stablecoin Legislation: Catalyst or New Beginning?

As a global leader in financial regulation, the U.S. is at a critical juncture with its proposed stablecoin bill, widely seen as a defining moment for the industry. Standard Chartered highlights that a clear regulatory framework will provide legal certainty for stablecoin issuers, attracting more institutions and capital to the sector. Transparent regulations are also expected to mitigate market risks and boost investor confidence, paving the way for broader stablecoin adoption.

Unlike volatile cryptocurrencies, stablecoins are pegged to fiat currencies like the U.S. dollar, offering greater stability. This makes them indispensable for cross-border payments, decentralized finance (DeFi), and the digital transformation of traditional finance. Standard Chartered predicts that, following the bill’s passage, stablecoin supply could grow exponentially over the next three years, with the market expanding nearly tenfold.

A New Pillar for Dollar Hegemony

The rise of stablecoins is reshaping the cryptocurrency landscape while injecting new vitality into the U.S. dollar’s global influence. Standard Chartered’s analysis suggests that demand for dollar-pegged stablecoins, such as USDC and USDT, will significantly increase the need for dollar reserves, directly driving demand for the U.S. currency. This demand extends beyond transactional use, as stablecoin issuers hold U.S. Treasuries to maintain price stability.

“The growth of stablecoins will indirectly make them a significant buyer in the U.S. Treasury market,” Standard Chartered notes in its report. “This not only helps reduce the U.S. government’s borrowing costs but further entrenches the dollar as the world’s reserve currency.” Data shows that, as of early 2025, approximately 70% of global stablecoin reserves are held in U.S. Treasuries, a proportion likely to grow in the coming years.

Industry Shift: Toward the Circle Model

Within the stablecoin sector, competition and regulatory pressures are driving a transformation in business models. Standard Chartered forecasts that stablecoin issuers will increasingly adopt the operational framework of Circle, the issuer of USDC. Circle’s success stems from its close collaboration with regulators, strict compliance measures, and transparent reserve management, earning it the trust of both markets and authorities. In contrast, some competitors face challenges due to insufficient reserve transparency or compliance issues.

“Circle’s model thrives on its regulatory alignment and commitment to financial stability,” Standard Chartered analysts state. “This approach is likely to become the industry standard, prompting other issuers to refine their strategies.” By 2028, USDC is expected to significantly expand its market share, emerging as a dominant force in the stablecoin market.