Don't Sleep on Stablecoin! How This Sector of Crypto Can be the Next Profitable Narrative

2025-04-16

While most crypto headlines are dominated by Bitcoin ETFs, memecoins, and layer-2 innovations, stablecoins—often overlooked—are quietly shaping up to become the next billion-dollar narrative.

According to a recent report by Standard Chartered, the stablecoin market could grow from $230 billion today to an astounding $2 trillion by 2028.

With upcoming U.S. legislation like the Genius Act poised to reshape regulatory clarity, stablecoins are gaining the attention they deserve—not just as a financial utility, but as a massive investment and infrastructure opportunity.

What Are Stablecoins and Why Do They Matter?

Stablecoins are digital assets designed to maintain a stable value by pegging them to reserve assets such as the U.S. dollar, gold, or a basket of currencies. Popular examples include USDT (Tether), USDC (Circle), and DAI.

Their value doesn’t fluctuate like traditional cryptocurrencies, making them essential for:

Fast and cheap cross-border payments
Hedging against crypto market volatility
Providing liquidity in decentralized finance (DeFi)
On-ramping and off-ramping fiat currencies in exchanges

Stablecoins are already cornerstones of crypto infrastructure, accounting for billions in daily transaction volume and billions more in locked value across DeFi protocols.

The Genius Act: A Game Changer for Stablecoin Adoption

The Guiding and Establishing National Innovation for U.S. Stablecoins (Genius) Act, currently making its way through Congress, could be the turning point for the stablecoin industry.

Cleared by the Senate Banking Committee in March 2025, the act is expected to be signed by President Donald Trump later this year.

According to Standard Chartered’s prediction, once passed, the Genius Act could:

Legitimize the stablecoin industry in the U.S.
Increase investor and institutional confidence
Allow regulated issuance by licensed financial entities
Boost mainstream usage of stablecoins for payments, remittances, and investments

The passage of the act is expected to multiply stablecoin supply by nearly 10 times, reaching $2 trillion by 2028.

Stablecoins and the U.S. Dollar: Strengthening Hegemony

Stablecoins are inherently tied to the U.S. financial system, with most denominated in U.S. dollars. This link strengthens the global dominance of the dollar, and as their usage increases, so does demand for U.S. Treasury bills.

Standard Chartered’s report estimates that:

An additional $1.6 trillion in U.S. Treasury purchases will be needed to back the predicted growth in stablecoins
That buying pressure would absorb all the fresh Treasury bill issuance planned for Trump’s second term
Increased reserves would further entrench the dollar’s supremacy in global finance

This growing connection between stablecoins and U.S. financial instruments gives regulators a reason to embrace them—not just as a crypto tool, but as a strategic economic asset.

From Tether to Circle: Shifting Towards a More Transparent Model

Currently, Tether (USDT) and Circle (USDC) dominate the stablecoin landscape:

USDT: Holds 66% of reserves in Treasury bills
USDC: Holds 88% of reserves in short-duration Treasuries (average of 12 days)

Standard Chartered expects the industry to shift toward Circle’s model of transparency and compliance.

This implies that future growth will likely favor regulated and audited issuers, creating investment opportunities in firms offering secure, compliant stablecoin products.

The Investment Narrative: Stablecoins Beyond Utility

Up until now, stablecoins have largely been considered tools—not opportunities. But the narrative is changing:

Revenue generation from interest on reserves has become a major income stream for issuers
DeFi protocols are building yield products based entirely on stablecoin liquidity
Cross-border businesses are beginning to adopt stablecoins as cheaper alternatives to SWIFT-based transfers

With the Genius Act on the horizon and projections pointing toward explosive growth, early exposure to the stablecoin sector could prove as profitable as early bets on smart contract platforms or layer-2 chains.

Prediction: What the Future Holds

Here’s what the stablecoin market might look like by end-2028, based on Standard Chartered's report:

Market cap: $2 trillion
Treasury demand: Additional $1.6 trillion
Regulatory clarity: Clear guidelines for issuance and operation in major economies
Dominant players: Regulated and transparent issuers like Circle could dominate
New entrants: Traditional financial institutions could launch their own stablecoins

As the report concludes, the line between traditional finance and crypto will continue to blur, and stablecoins will be at the heart of this convergence.

Conclusion: Don't Sleep on Stablecoins

Stablecoins might not have the thrill of memecoins or the hype of NFTs, but their utility, regulatory momentum, and institutional adoption are aligning perfectly for the next big wave.

Backed by tangible assets, linked to real-world finance, and poised to ride the momentum of the Genius Act, the stablecoin sector is no longer just “stable”—it’s potentially highly profitable.

FAQ

What is a stablecoin?

A stablecoin is a type of cryptocurrency designed to maintain a stable value, typically pegged to a real-world asset like the U.S. dollar, euro, or gold. Popular examples include USDT (Tether) and USDC (Circle).

They are primarily used to reduce volatility, facilitate fast payments, and act as a bridge between traditional finance and crypto.

Why are stablecoins important in crypto markets?

Stablecoins are essential because they:

Provide price stability in volatile markets
Enable instant, low-cost cross-border transactions
Serve as collateral in DeFi and trading platforms
Facilitate on/off-ramps for fiat currency in exchanges

What did Standard Chartered predict about stablecoins?

Standard Chartered forecasted in its April 2025 report that:

The stablecoin market will grow nearly 10x, reaching $2 trillion by 2028
The sector will require up to $1.6 trillion in new Treasury bill purchases
Growth in stablecoins will strengthen the U.S. dollar’s dominance globally