Standard Chartered Bank: The market value of stablecoins will reach $2 trillion by the end of 2028, bringing new demand for U.S. Treasuries of $800 billion to $1 trillion

According to The Block, a recent study by Standard Chartered Bank indicates that stablecoin issuers are expected to become one of the largest buyers of U.S. Treasury bonds, which could reshape the way the U.S. government finances itself in the coming years.

Analysts led by the bank's Global Head of Digital Assets Research, Geoffrey Kendrick, and Standard Chartered's U.S. Interest Rate Strategist, John Davies, stated that they still expect the market capitalization of stablecoins to reach $2 trillion by the end of 2028. This expansion will bring approximately $800 billion to $1 trillion in new demand for U.S. Treasury bonds, as issuers accumulate short-term government bonds as reserve assets. Stablecoin issuers are becoming the largest buyers of U.S. Treasury bonds. They also added that if the issuance pattern remains unchanged, this demand could create approximately $900 billion in excess demand for Treasury bonds over the next three years.