U.S. Treasury Advisory Committee: Stablecoin U.S. Treasury Reserves Could Exceed China's Holdings by 2028

TechFlow, May 6 — According to Forbes, the U.S. Treasury Borrowing Advisory Committee (TBAC) has forecasted that the stablecoin market could reach $2 trillion by 2028. With the upcoming GENIUS Act in August this year, stablecoin issuers will be required to hold U.S. Treasuries as reserves, potentially surpassing China's current holdings of $784 billion in U.S. debt. Treasury Secretary Scott Bessent stated that stablecoins not only expand the use of the dollar but also "support sustained demand for U.S. Treasuries." Data shows that stablecoins currently hold over $120 billion in short-term Treasury securities and an additional $90 billion invested in money market funds.