Standard Chartered Bank: Stablecoin market capitalization will reach $2 trillion by the end of 2028, potentially making it one of the largest buyers of US Treasury bonds.

A new study by Standard Chartered Bank suggests that stablecoin issuers are poised to become one of the largest buyers of US Treasury bonds, potentially reshaping how the US government finances itself in the coming years. Analysts led by Geoffrey Kendrick, Global Head of Digital Asset Research at Standard Chartered, and John Davies, US Interest Rate Strategist at Standard Chartered, stated that they still expect the market capitalization of stablecoins 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 Treasury bonds as issuers accumulate short-term government bonds as reserve assets. Stablecoin issuers are becoming the largest buyers of US Treasury bonds. They added that if the issuance pattern remains unchanged, this demand could create approximately $0.9 trillion in excess demand for Treasury bonds over the next three years. (The Block)