Standard Chartered: Stablecoin Market Cap to Reach $20 Trillion by End of 2028, Bringing $0.8 Trillion to $1 Trillion of New Demand for US Treasuries

BlockBeats News, February 23rd, according to The Block, a recent study by Standard Chartered Bank indicates that stablecoin issuers are poised to become one of the largest buyers of US treasuries, potentially reshaping the US government's funding mechanism in the coming years.

Analysts led by Standard Chartered Bank's Global Head of Digital Assets Research, Geoffrey Kendrick, and Standard Chartered Bank's US Rate Strategist, John Davies, stated that they still expect the stablecoin market cap to reach $2 trillion by the end of 2028. This expansion would bring about $0.8 trillion to $1 trillion in additional 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 also added that if the issuance pattern remains unchanged, this demand could lead to approximately $0.9 trillion in excess demand for treasuries in the next three years.