According to a report by the United States Department of the Treasury, US dollar-pegged stablecoins are projected to achieve a combined market capitalization of approximately $2 trillion by 2028. Currently, the total market cap of stablecoins is around $230 billion. The report highlights that stablecoins, functioning as a new payment mechanism, are widely used as 'cash on-chain'. The Treasury indicates that the growth of stablecoins could lead to increased global demand for US Treasury bills. The administration under President Donald Trump has shown an interest in blockchain technology, emphasizing its potential to create a new financial market infrastructure. Notable stablecoins such as Tether and USDC dominate the market, with Tether holding a market cap of approximately $150 billion, while USDC follows with about $60 billion. Upcoming legislation may require stablecoin issuers to hold strict reserves, impacting the market significantly.

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