Standard Chartered: Stablecoin market cap will reach $2 trillion by the end of 2028, bringing $800 billions to $1 trillion in new demand for U.S. Treasuries

BlockBeats news, February 23, according to The Block, the latest research from Standard Chartered Bank indicates that stablecoin issuers are expected to become one of the largest buyers of US Treasuries, which could reshape the way the US government finances itself in the coming years.

The analysis, led by Geoffrey Kendrick, the bank's Global Head of Digital Assets Research, and John Davies, Standard Chartered Bank's US Rates Strategist, states that they still expect the market capitalization of stablecoins to reach $2 trillion by the end of 2028. This expansion will bring about $800 billion to $1 trillion in additional demand for US Treasuries, as issuers accumulate short-term government bonds as reserve assets. Stablecoin issuers are becoming the largest buyers of US Treasuries.

They also added that if the issuance model remains unchanged, this demand could result in about $900 billion in excess demand for Treasuries over the next three years.