Standard Chartered predicts that stablecoin supply may reach US$2 trillion in 2028

Source: Blockchain Knight

Standard Chartered believes that if the upcoming US legislation passes as expected, the stablecoin supply could swell to $2 trillion by 2028, creating $1.6 trillion in new demand for US Treasuries.

The report, written by Geoffrey Kendrick, head of digital asset research at Standard Chartered, expects that the US Global Economic Network Stablecoin Act (GENIUS Act) will provide a huge boost to stablecoins and their development, which will formalize the legal framework for stablecoins.

The bill passed the Senate Banking Committee in March and is expected to be signed into law in the summer.

The Global Economic Network Stablecoin Act establishes a regulatory framework that requires stablecoins to be fully reserved, with a high preference for using highly liquid US assets such as US Treasuries as reserves. Standard Chartered estimates that as the supply of stablecoins expands, this will prompt sustained and large-scale purchases of government bonds.

Such demand is large enough to absorb all the new US Treasury bonds planned to be issued during Trump’s second term, Kendrick said.

Unlike previous speculative growth, Standard Chartered expects stablecoin demand to be structurally linked to fiscal markets, with issuers needing to match the supply of tokens in circulation with liquid reserves.

The estimated $1.6 trillion in Treasury demand only reflects new stablecoins issued under these terms, and does not include traditional tokens or broader digital assets.

The report explains that short-term US Treasury bonds will be the best reserve asset to manage liquidity and market volatility as issuers want to avoid “maturity mismatch” situations.

The rise of regulated dollar-pegged stablecoins could also enhance global demand for the dollar, especially in countries facing currency instability or capital controls, the report noted.

Standard Chartered believes that the ability to access tokenized dollars through blockchain channels can deepen the dollar's international position without relying on traditional banking infrastructure.

Kendrick added that this new way of exporting dollars can serve as a "means to offset threats to current dollar hegemony in the medium term," especially against the backdrop of rising trade barriers and increasing currency fragmentation.

With legislation that may bring stablecoins more closely into the US financial system, their influence may grow from Crypto-native tools to core components of global dollar liquidity and fiscal support.