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.
Alex is Editor-in-Chief of Coindoo and co-founder of Millennial Media Group, with nearly a decade of experience covering financial markets - crypto first, then everything else. It started in 2016 with Bitcoin. Like most people at the time, he didn't fully understand it - so he kept digging. Blockchain, tokenomics, the projects, the cycles. That curiosity never stopped, and eventually pulled him into traditional markets too: equities, commodities, macro. Not because he left crypto behind, but because you can't properly understand one without the other. What drives him is straightforward: he wants to know why something is happening, not just that it's happening. Most market coverage stops at the headline - price up, price down, here's a chart. Alex finds that kind of reporting actively unhelpful. If you walk away from an article without understanding the mechanism behind the move, what did you actually learn? He holds a degree in Tourism from New Bulgarian University - not the most obvious path into financial markets, but markets have a way of pulling in people who are simply too curious to stay out. He has authored over 200 in-depth analyses and more than 10,000 articles across crypto and traditional finance. He still thinks every day in markets teaches him something new. That's probably why he hasn't stopped.
