Stablecoin Supply Set to Skyrocket to $2 Trillion by 2028, Standard Chartered Says
A new report from Standard Chartered forecasts a dramatic surge in the total supply of stablecoins — from $230 billion today to $2 trillion by the end of 2028 — fueled by anticipated U.S. legislation designed to formalize rules for the digital dollar sector.
According to the report published Tuesday, analysts led by Geoffrey Kendrick, Standard Chartered’s global head of digital assets research, say that the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act could be signed into law this summer. The legislation recently passed the Senate Banking Committee and is expected to usher in a new era of legal clarity and institutional legitimacy for the stablecoin industry.
“We estimate that this would cause total stablecoin supply to rise from $230 billion today to $2 trillion by end-2028,” Kendrick and team wrote.
$1.6 Trillion in New Treasury Demand
One of the most significant implications of this expansion is the expected demand for U.S. Treasury bills. Standard Chartered estimates that stablecoin issuers would need to purchase around $1.6 trillion in T-bills over the next four years — roughly $400 billion annually.
“The industry could well account for the largest buying flow of any sector across all U.S. Treasuries,” the analysts noted. “Only foreign buyers have matched this scale post-COVID, and even then, it was more diversified across T-bills, notes, and bonds.”
Such demand could play a pivotal role in supporting the U.S. government’s borrowing capacity, especially during President Donald Trump’s second term, should the estimated issuance volumes hold true.
Circle’s Reserve Model May Become Industry Standard
With the GENIUS Act requiring reserve holdings to have a duration of 93 days or less, analysts expect stablecoin issuers to follow Circle’s reserve approach as the template. Circle currently holds 88% of its USDC reserves in short-term U.S. government bonds, averaging a 12-day duration.
“Given that stablecoin issuers would likely prefer to avoid risk around the time of FOMC meetings, we see Circle’s shorter-duration holdings as a good indication of what the industry will adopt going forward,” the report stated.
If adopted industry-wide, that model would push total stablecoin-related T-bill holdings to $1.75 trillion by 2028, up from just $150 billion today.
Alexander Stefanov
Reporter at Coindoo
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over 8 years of experience covering the crypto, blockchain and fintech industries, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics.
