Stablecoin Market Could Grow to $2 Trillion by End of 2028: Standard Chartered
The report claims that the passage of the Genius Act in the US, expected in the coming months, will further legitimize the stablecoin industry.
Author: Will Canny | Edited by: Sheldon Reback Updated: April 15, 2025, 6:43 PM Published: April 15, 2025, 2:37 PM
What you need to know:
- The passage of the Genius Act in the US could lead to a significant increase in the supply of stablecoins, according to information from Standard Chartered.
- The report suggests that the stablecoin market could reach $2 trillion by the end of 2028, up from the current $230 billion.
- The bank noted that the growth in the supply of stablecoins will affect purchases of US Treasury bonds and the stability of the dollar.
The US Stablecoin Guidance and Innovation Creation Act (Genius) is expected to be passed in the coming months, which could lead to a nearly 10-fold increase in stablecoin supply, investment bank Standard Chartered said in a research report on Tuesday.
Analysts led by Jeff Kendrick argue that the US legislation “further legitimizes the stablecoin industry,” adding: “Our estimates suggest that this will drive the total supply of stablecoins from $230 billion to $2 trillion by the end of 2028.”
Stablecoins are cryptocurrencies whose value is pegged to another asset, such as the US dollar or gold. They play a key role in cryptocurrency markets and are widely used for international money transfers.
The bank noted that the proposed legislation was approved by the Senate Banking Committee in March and is likely to be passed by Congress and signed by President Donald Trump around midyear.
The report emphasizes that the growth in stablecoin supply will impact the purchase of US Treasury bonds and the stability of the dollar.
The expected increase in stablecoin issuance will require additional purchases of Treasury bills worth $1.6 trillion over the next four years.
“That would be enough to absorb all the new Treasury bill issuance planned for the remainder of Trump's second term,” the authors note.
The bank also added that increased interest in dollar-denominated stablecoin reserves will lead to additional demand for US dollars, which should support the dollar's hegemony.
Standard Chartered expects the industry to move towards the model used by USDC issuer Circle, the second-largest stablecoin issuer, which holds 88% of its reserves in Treasury bills with an average maturity of 12 days.
The report also notes that Tether, the largest stablecoin issuer, holds 66% of its USDT reserves in Treasury bills.
Read more: XRP could hit $12.5 before Trump's term ends: Standard Chartered
