Stablecoins could surpass the $2T market size by 2028, per Bessent.
Clear legislation could be a crucial catalyst for the expected growth.
The U.S. dollar will remain a world reserve currency through payment stablecoins, according to Treasury Secretary Scott Bessent.
While testifying before the Senate Appropriations Committee (SAC) on the 11th of June, Bessent went on and added,
“I believe stablecoin legislation backed by the U.S treasuries, T-bills, will expand U.S dollar usage via the stablecoins all around the world. $2T (market cap) is a reasonable, but I see it exceeding that.”
Worth pointing out that the Senate stablecoin bill, the GENIUS Act, passed a key vote on Wednesday, increasing the odds of enactment in Q3.
Stablecoins fuel demand for T-bills
That said, the Treasury Department acknowledged the importance of stablecoins in the T-bills market in a May report.
In fact, as of Q1 2025, Tether, the issuer of the largest USDT stablecoin by market cap, was the 19th top net buyer of T-bills. It has $119 billion of T-bills as part of its reserves backing USDT.
Overall, T-bills make up about 81% of Tether’s reserves, while Bitcoin [BTC], loans, and precious metals account for the rest.
Source: Tether
Circle, the second-largest issuer, has a nearly similar reserve structure backing its USDC stablecoin.
The GENIUS Act would offer a framework for onshore stablecoin issuers to operate legally in the sector, ensuring user protection and reducing illicit activities.
In fact, there was a pent-up demand for investment exposure in the stablecoin sector, going by the resounding success of Circle’s IPO (initial public offering).
Circle’s stock, CRCL, blasted 300% from a pre-IPO level of $31 to over $120 before easing slightly.
For perspective, the stablecoin sector has been the fastest-growing segment over the past five years. It has expanded over 50X from $5B to $251B market cap, with Tether’s USDT dominating at 62%.
A sustained expansion to $2T would mean 8x growth from the current level.
Source: DeFiLlama
USDT has a market cap of $156B, followed by USDC at $60B. Given the massive use case in remittance and global business payment, the sector is expected to expand, and clear regulation could be a key catalyst.
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