Stablecoin Market Poised for Explosive Growth, Potentially Reaching $4 Trillion by 2035
The stablecoin market, currently valued at $280 billion in 2025, is on track for significant expansion, with projections suggesting it could reshape the multitrillion-dollar US Treasury market. Industry leaders like Tether and Circle, which command a combined 90% share of the stablecoin market, are driving this growth, fueled by new regulatory clarity from the recently signed GENIUS Act.
Projections
According to a recent Yahoo Finance report, Wall Street is increasingly optimistic about the future of stablecoins—digital tokens pegged to the US dollar. Analysts from major financial institutions have forecasted substantial growth in the sector. JPMorgan predicts the stablecoin market will double to $500 billion by 2028, while Standard Chartered projects an even more ambitious $2 trillion valuation during the same period. Bernstein offers the most bullish outlook, estimating the market could reach $4 trillion by 2035 [1]. Warren said it could reach 2 trillion USD [2].
GENIUS Act
The GENIUS Act [4] has been a game-changer, establishing a regulatory framework that requires stablecoin issuers to back their tokens one-to-one with US currency or high-quality liquid assets, such as short-term US Treasury bills. This has positioned T-bills as the collateral of choice, potentially increasing demand for US Treasuries as the stablecoin market grows. “Stablecoins will expand dollar access for billions across the globe and lead to a surge in demand for U.S. Treasuries, which back stablecoins,” wrote Scott Bessent on X, highlighting the benefits for stablecoin users, issuers, and the US Treasury Department.
Treasury Bills
Currently, stablecoin issuers hold approximately $125 billion in Treasury bills, a modest 2% of the $6 trillion T-bill market [3], according to the Federal Reserve Bank of Kansas City. By comparison, mutual funds hold $4.5 trillion, underscoring the potential for stablecoins to become a more significant player. “Although the stablecoin market is currently too small to have a large effect on Treasury demand, the market is expected to grow substantially over the next several years,” noted Stefan Jacewitz, an economist at the Kansas City Fed.
Dominance
The dominance of Tether (65% market share) and Circle’s USD Coin (25% market share) underscores their influence in the sector. Circle, which went public in a blockbuster IPO, and Tether, which recently hired former White House crypto policy executive Bo Hines as a strategic adviser, are both positioning themselves for further expansion in the US market.
US Debt
As the US debt surpasses $37 trillion, the integration of stablecoins into the financial ecosystem could bolster the US dollar’s dominance in global digital finance. HSBC analysts noted, “A well-regulated stablecoin market could cement the US dollar dominance in the world of digital finance,” aligning with efforts to make the US the crypto capital of the world.
With Wall Street betting on the stablecoin market’s growth, the coming decade could see it evolve into a multitrillion-dollar force, transforming the US Treasury market and redefining global finance.