Stablecoins may hit $2 trillion as Max Keiser warns of US debt

The US Treasury projects that stablecoins may grow to a $2 trillion market by 2028, driven by increased adoption and stablecoin reserves backed by US Treasury bills.

The Treasury’s Q1 2025 report from the Borrowing Advisory Committee highlighted that evolving market dynamics and incentives could accelerate stablecoin growth to this level.

Currently, the stablecoin market stands at approximately $234 billion, with USD-pegged stablecoins accounting for 99% of the market.

MEXC exchange COO Tracy Jin suggested this milestone could be reached as early as 2026.

The Treasury also noted that stablecoin issuers will be required to hold short-dated Treasury bills as reserves, linking stablecoin demand closely to US Treasury bill issuance.

However, the growth of stablecoins may pressure retail banks to offer higher interest rates to depositors.

Bitcoin (CRYPTO:BTC)  advocate Max Keiser warned that stablecoins could “work the US dollar to death,” devaluing the dollar and worsening US debt levels.

Keiser described stablecoins as “a financial hospice where fiat money like the US dollar goes to die,” suggesting their expansion undermines the dollar’s value.

He added that increased stablecoin usage means US indebtedness will rise rather than fall, contradicting political promises of debt reduction.

Standard Chartered’s Head of Digital Assets Research, Geoff Kendrick, confirmed the Treasury’s $2 trillion forecast and noted that this growth would require an additional $1.6 trillion in Treasury bills to be held as reserves, matching planned new T-bill issuance.

Meanwhile, Tether (CRYPTO:USDT) plans to launch a US-only stablecoin by late 2025 or early 2026, aiming to position stablecoins as strategic financial tools under the Trump administration.

“We are just exporters of what we believe to be the best product the United States ever created - that is, the US dollar,” Tether CEO Paolo Ardoino said.

The rise of stablecoins is expected to bring more legitimacy to crypto, potentially benefiting Bitcoin through increased liquidity and institutional interest.