U.S. Treasury Advisory Group: Stablecoin market cap could reach $2 trillion, poised to surpass China as largest holder of U.S. Treasuries

TechFlow, May 5 — According to Forbes, the U.S. Treasury Borrowing Advisory Committee (TBAC) expects the stablecoin market to reach $2 trillion by 2028. With the GENIUS Act anticipated to pass in August this year, stablecoin issuers will be required to hold U.S. Treasuries as reserves—potentially exceeding China's current holdings of $784 billion in U.S. debt. Currently, over $120 billion in short-term U.S. Treasuries already back stablecoin issuance, with another $90 billion held in money market funds. U.S. Treasury Secretary Scott Bessent stated that stablecoins not only expand the use of the dollar but also support sustained demand for U.S. Treasuries.