US-based crypto exchange Coinbase says one digital asset sector may see astronomical growth in less than three years.
In a new crypto market report, Coinbase says that the stablecoin market cap could reach $1.2 trillion by 2028, a more than 300% increase from the current level.
“In our view, this doesn’t require unrealistically large or permanent rate dislocations to materialize; instead, it relies on incremental, policy-enabled adoption compounding over time.”
Coinbase says that the market for dollar-pegged crypto assets is at a significant turning point and adoption may accelerate.
“The stablecoin market is at an inflection point, with its growth resting on key factors like efficient ramps, broad distribution networks, and the evolving roles of market players. At a compound annual growth rate of around 65% (since 2021), the global stablecoin market cap has breached $275 billion as of mid-August 2025, with average adjusted transaction volumes surging to $15.8 trillion in 2025 YTD (through July 31) up from $10.3 trillion over the same period in 2024, based on Artemis data.”
Coinbase’s forecast model includes various factors such as the amount of US Treasuries issued, since stablecoins must be backed by US dollars or Treasuries.
“Our model focuses on historical observations that include (1) the recent US policy momentum (e.g., passage of the GENIUS Act, allied state/federal frameworks, etc.), (2) the integration of stablecoins into institutional rails, and (3) major improvements in fiat on/off-ramps… Moreover, we think a $1.2 trillion path is both realistic and consistent with our front-end rates model. Growing from $275 billion today to $1.2 trillion implies roughly $925 billion of net US Treasury issuance over about 175 weeks – or about $5.3 billion per week.”
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