Five years ago, stablecoins were a $20 billion industry. Today, they are a $250 billion industry. And in just three years, this rapidly growing sector of the cryptocurrency market could be worth an eye-popping $2 trillion.

That's according to U.S. Treasury Secretary Scott Bessent, who recently testified in front of Congress about the future growth of the stablecoin market. As a result, stablecoins could be a once-in-a-lifetime investment opportunity -- as long as you know where to look.

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As Bessent sees it, stablecoins are becoming the new digital pillars of the dollar-based global financial system. Thus, the U.S. government must do everything it can to foster the growth of this industry, including passing new stablecoin legislation that's currently working its way through Congress.

There are two key reasons Bessent is so bullish about stablecoins. The first involves the huge $37 trillion debt load facing the U.S. government. If all goes according to plan, stablecoins will become a key policy instrument to help reduce the impact of that debt load.

At the same time, there's been increasing talk about the U.S. dollar losing its status as the global reserve currency. According to Bessent, stablecoins could be the key to fixing this problem as well.

In short, stablecoins have become -- in the minds of some policy makers, at least -- a sort of magic bullet that can solve multiple economic problems at once.

To understand why, it's important to know that stablecoins are pegged 1:1 to the U.S. dollar. This means that they are always supposed to trade for exactly $1. And to make that a reality, they must be backed 100% by cash. At any point in time, you can theoretically trade $1 in cash for $1 in stablecoins, and vice versa.

Cash can also include cash equivalents, such as short-term, highly liquid Treasury bills.

That's what leads to the hidden link between stablecoins and the nation's $37 trillion debt load. Bessent expects that debt load to expand by another $2 trillion during the next three years.

Thus, expect stablecoins to grow by a similar amount. That's because stablecoin issuers will opt to back their stablecoins with T-bills instead of cash. In doing so, they will become buyers of new government debt. And, indeed, the two largest stablecoin issuers -- (CRYPTO: USDT) and (NYSE: CRCL) -- already hold more than $142 billion in T-bills.

Over time, this additional demand for Treasury debt should help to push down yields. As a result, the U.S. government will have to pay less on its debt, and that will make it easier to pay for things like roads and bridges, social programs, and defense.

At the same time, demand for digital dollars (i.e., stablecoins) will naturally lead to demand for physical dollars. That's because they are inextricably linked, via the dollar peg. This should help to ensure the continued global hegemony of the U.S. dollar. As the stablecoin market grows in size, the dollar should become stronger, not weaker.

OK, so let's get to the good part: How do investors profit from this emerging new opportunity? Let's start off with the obvious: Stablecoins always trade for exactly $1, so you aren't going to become a crypto millionaire by investing in stablecoins themselves.

Instead, you should think about investing in stablecoin issuers. These are the companies that stand behind these stablecoins. My top pick here is , which just went public on June 5. The initial public offering priced at $31, and Circle exploded right out of the box. The stock is currently trading for almost $200 (as of June 19).

It's still early innings here, but if Bessent is expecting stablecoins to grow exponentially, then good times are ahead for Circle and its dollar-pegged stablecoin (CRYPTO: USDC).

If you are feeling particularly bullish on stablecoins, you could go one step further, and start exploring even smaller stablecoin issuers. The one that really stands out is , the crypto venture affiliated with the Trump family. In March, this firm officially launched a stablecoin of its own, (CRYPTO: USD1).

Looking ahead, it's easy to see how a rapidly growing stablecoin sector could lead to rapid new growth of companies offering services to would-be stablecoin issuers. That could lead to even more investment options for crypto investors.

From my perspective, if the U.S. government is now embracing dollar-pegged stablecoins, then the stablecoin investment trend could be unstoppable. Treasury Secretary Bessent has given a clear signal to get off the sidelines and start searching out potential new investment opportunities.

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Dominic Basulto has positions in Circle Internet Group and USDC. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.