TLDR
- Stablecoins are expected to process $1 trillion in annual payment volume by 2028.
- They could make up 10% of the total U.S. money supply by 2030.
- Stablecoin issuers currently hold more U.S. Treasuries than countries like Germany and South Korea.
- Payments made with stablecoins are up to 13 times cheaper and settle within seconds.
- The “stablecoin sandwich” model is replacing correspondent banks in cross-border transactions.
A new report states that stablecoins are projected to handle $1 trillion in annual payments by 2028, significantly reshaping monetary policy. Research from Keyrock and Bitso outlines how stablecoins may account for 10% of the U.S. money supply by 2030. Their growing influence on Treasury markets and payment infrastructure signals a shift in global finance.
Stablecoins Emerging as Financial Infrastructure
Stablecoins now facilitate payments 13 times cheaper than banks and settle transactions in seconds, the report confirms. The market has expanded from $4 billion in 2020 to over $280 billion in 2025, with rapid growth continuing. Monthly settlement volumes surpassed $1.39 trillion in early 2025 alone.
The report states stablecoins could act as a “new financial operating system,” reducing reliance on traditional intermediaries. Through a model called the “stablecoin sandwich,” stablecoins streamline cross-border payments using fiat on-ramps, blockchain transfers, and fiat off-ramps. This system replaces correspondent banks, allowing instant, low-cost global payments.
Virtual accounts powered by stablecoins mimic U.S. bank accounts but allow faster onboarding and self-custody for users in emerging markets. These accounts provision in minutes and operate without legacy banking delays. Fintech firms are adopting stablecoin infrastructure to gain control over payment processing and improve efficiency.
Treasury Exposure and FX Disruption
The report highlights that Stablecoin issuers now hold more U.S. Treasuries than major countries like Germany and South Korea. Their $2 trillion supply impacts short-term yields, making issuers key players in yield curve dynamics. By investing in Treasuries, issuers generate revenue while indirectly influencing U.S. fiscal operations.
“Legal certainty is the starting point, as without it, even the most advanced technology struggles,” said Keyrock CEO Kevin de Patoul. Stablecoins are also targeting the $7.5 trillion daily foreign exchange market through atomic on-chain settlement. On-chain FX eliminates counterparty risk by combining messaging and payment into a single transaction.
Early adoption has started across select currency pairs, signaling broader shifts ahead. Stablecoin systems enable 24/7, real-time FX settlements that bypass T+2 delays and reduce operational costs. This shift may pressure traditional banks to adapt on-chain systems to remain competitive.
Deposit Risk and Regulatory Pressure Mount
Stablecoin adoption raises regulatory concerns, especially regarding yield-bearing programs and deposit outflows from banks. The report reveals that 21% of U.S. deposits worth $3.85 trillion earn no yield, making stablecoin yields attractive. Over $600 million has already been distributed through such programs.
Banking groups urge lawmakers to tighten rules under the GENIUS Act to address deposit flight risks. Treasury data suggests up to $6.6 trillion could leave banks if stablecoin yields remain unchecked. “We are not the issuer,” Coinbase CEO Brian Armstrong said, defending their rewards program.
Despite pushback, stablecoins continue gaining traction in emerging markets where local payment systems remain costly and fragmented. Mastercard and Visa have integrated stablecoin payments across multiple regions, increasing access and lowering remittance costs. Stablecoins now offer programmable compliance and real-time transaction transparency at a global scale.
