Market for Stablecoins like USDT, USDC can grow to $ 2T by end-2028: Standard Chartered
The guidance and establishment of national innovation for the US Stablecoins (Genius) Act is expected to be passed in the US in the coming months, and may trigger nearly 10-fold jumps on Stablecoin’s supply, the Chartered Bank Standard said in a research report on Tuesday.
US law “will further legitimize the Stablecoin industry,” written by analysts led by Geoff Kendrick, which added that “we estimate it will cause the total stablecoin supply to rise from $ 230bn now to $ 2TN by year-end 2028.”
Stablecoins are cryptocurrencies that the value is tied to another owner, such as the US dollar or gold. They play a major role in cryptocurrency markets and are also used to transfer money worldwide.
The bank noted that the proposed law was that the Senate Banking Committee had March And it looks likely that Congress will pass and then Signed by President Donald Trump around the middle of the year.
An increase in Stablecoin supply has had implications for the purchase of US Treasury and US dollar hegemony, the report said.
The bank estimated the Stablecoin issuance will require the additional purchase of $ 1.6 trillion of bills over the next four years.
“It was enough to get all the fresh T-bill releases planned for Trump’s remaining second term,” the authors wrote.
Increasing demand for dollar stablecoin reserves will result in further demand for the US dollar, the bank said, and it should support the dollar hegemony.
The Standard Charter said the industry is expected to move to the model used by the USDC Issuer Circle, the second largest Stablecoin provider, holding 88% of its reserves in bills with an average period of 12 days.
Tether, the largest stablecoin provider, holds 66% of USDT reserves in Treasury bills, the report mentioned.
Read more: XRP may press $ 12.5 before the end of President Trump’s term: Standard Chartered
