Standard Chartered Bank: Stablecoin Market Cap to Reach $2 Trillion by End of 2028, Poised to Become One of the Largest Buyers of US Treasuries

Odaily News Standard Chartered Bank's latest research indicates that stablecoin issuers are poised to become one of the largest buyers of US Treasuries, potentially reshaping the US government's financing methods in the coming years.

Analysts led by Geoffrey Kendrick, the bank's Global Head of Digital Asset Research, and John Davies, Standard Chartered's US Interest Rate Strategist, stated that they still expect the stablecoin market capitalization to reach $2 trillion by the end of 2028. This expansion would generate approximately $0.8 trillion to $1 trillion in new demand for US Treasuries, as issuers accumulate short-term government bonds as reserve assets. Stablecoin issuers are becoming the largest buyers of US Treasuries.

They further added that if the issuance model remains unchanged, this demand could create an excess demand of about $0.9 trillion for US Treasuries within the next three years. (The Block)