Standard Chartered predicts stablecoin supply could reach $2 trillion by 2028
TechFlow Selected TechFlow Selected
Standard Chartered predicts stablecoin supply could reach $2 trillion by 2028
Standard Chartered expects stablecoin demand to be structurally linked to fiscal markets, requiring issuers to match circulating token supply with liquid reserves.
Navigating Web3 tides with focused insightsSource: cryptoslate
Translation: Blockchain Knight
Standard Chartered believes that if upcoming U.S. legislation passes as expected, stablecoin supply could expand to $2 trillion by 2028, generating $1.6 trillion in new demand for U.S. Treasuries.
The report, authored by Geoffrey Kendrick, Head of Digital Asset Research at Standard Chartered, anticipates that the U.S. GENIUS (Global Economic Network Interoperability for US dollar) Act will provide significant momentum for stablecoins and their development by formally establishing a legal framework for stablecoins.
The bill passed through the Senate Banking Committee in March and is expected to be signed into law during the summer.
The GENIUS Act establishes a regulatory framework requiring stablecoins to be fully reserved, with a strong preference for highly liquid U.S. assets such as U.S. Treasuries as reserve collateral. Standard Chartered estimates that as stablecoin supply grows, this will drive sustained and large-scale purchases of government bonds.
"This level of demand would be sufficient to absorb all newly issued U.S. Treasury debt planned during Trump's second term," said Kendrick.
Unlike previous speculative growth, Standard Chartered expects stablecoin demand to become structurally linked to the fiscal market, with issuers required to match circulating token supply with liquid reserves.
The projected $1.6 trillion in Treasury demand reflects only newly issued stablecoins under these terms and does not include traditional tokens or broader digital assets.
The report explains that because issuers will want to avoid "maturity mismatches," short-term U.S. Treasuries will be the optimal reserve asset for managing liquidity and market volatility.
The report also notes that the rise of regulated dollar-pegged stablecoins could strengthen global demand for the U.S. dollar, especially in countries facing currency instability or capital controls.
Standard Chartered believes that access to tokenized dollars via blockchain channels could enhance the international standing of the dollar without reliance on traditional banking infrastructure.
Kendrick added that this new form of dollar export could serve as a "means to counterbalance threats to current dollar dominance over the medium term," particularly against a backdrop of rising trade barriers and increasing monetary fragmentation.
As legislation may increasingly integrate stablecoins into the U.S. financial system, their influence could evolve from being crypto-native tools into core components of global dollar liquidity and fiscal support.
Join TechFlow official community to stay tuned
Telegram:https://t.me/TechFlowDaily
X (Twitter):https://x.com/TechFlowPost
X (Twitter) EN:https://x.com/BlockFlow_News
@CryptoSlate
