U.S. Treasurys Set to Benefit From Stablecoin Boom, Analysts Say
Standard Chartered forecasts a massive jump in stablecoin supply to $2 trillion by 2028 — a move that could inject $1.6 trillion into U.S. Treasury bills, provided Donald Trump backs pending crypto legislation.
Currently, the stablecoin market is worth about $230 billion, with most of it anchored to short-term government debt.
Analyst Geoff Kendrick argues that regulatory clarity could trigger a surge in demand for T-bills, estimating $400 billion in annual flows during a potential second Trump term. That wave of buying could absorb nearly all new short-term debt issuance during the same window.
Kendrick emphasized that this isn’t just a byproduct of growth — stablecoins would become the top buyers of Treasurys, surpassing even foreign investors during the post-COVID era. Unlike other sectors, stablecoins exclusively target short-term debt for its liquidity, safety, and dollar backing.
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This demand, he said, isn’t just stabilizing the tokens themselves — it also reinforces U.S. dollar dominance globally, at a time when tariffs and trade friction threaten its supremacy.
Two bills — the GENIUS Act and the STABLE Act — are seen as key to unlocking this growth. Both have advanced in Congress, and their passage under a new administration could remove regulatory uncertainty and open the door for institutions to scale rapidly.
Kendrick also noted that network effects in the digital asset space make U.S. dollar-backed stablecoins particularly sticky. As these tokens expand further into payment systems and DeFi platforms, they will continue to pull in more dollar-denominated reserves, reinforcing a cycle that strengthens the greenback’s position in global finance.
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.
