Standard Chartered expects that the demand for stablecoins will be structurally linked to the fiscal market, and issuers will need to match the circulating supply of tokens with liquid reserves.
Source: cryptoslate
Compilation: Blockchain Knight
Standard Chartered believes that if the upcoming U.S. legislation passes as expected, the stablecoin supply could swell to $2 trillion by 2028, creating $1.6 trillion in new demand for U.S. Treasuries.
The report, written by Geoffrey Kendrick, head of digital asset research at Standard Chartered Bank, expects that the U.S. Global Economic Network Stablecoin Act (GENIUS Act) will give a huge boost to stablecoins and their development, which will formalize the legal framework for stablecoins.
The bill passed the Senate Banking Committee in March and is expected to be formally signed into law by the summer.
The Global Economic Network Stablecoin Act establishes a regulatory framework that requires stablecoins to be fully reserved, with a high preference for highly liquid U.S. assets such as U.S. Treasuries as reserves. Standard Chartered estimates that as the supply of stablecoins expands, this will prompt sustained and large-scale purchases of government bonds.
"The scale of demand is large enough to absorb all the new U.S. Treasuries that Trump plans to issue during his second term," Kendrick said.
!
Unlike previous speculative growth, Standard Chartered expects stablecoin demand to be structurally linked to the fiscal market, with issuers needing to match the circulating supply of tokens with liquid reserves.
The projected demand for $1.6 trillion in Treasury bonds reflects only new stablecoins issued under these terms, excluding traditional tokens or broader digital assets.
The report explains that short-dated U.S. Treasuries will be the best reserve asset to manage liquidity and market volatility as issuers look to avoid a "maturity mismatch".
The rise of regulated dollar-pegged stablecoins could also boost global demand for the dollar, especially in countries facing currency instability or capital controls, the report notes.
Standard Chartered believes that the ability to access tokenized dollars through blockchain channels can deepen the dollar's international standing without relying on traditional banking infrastructure.
Kendrick added that this new way of exporting the dollar could serve as a "means of counteracting the current threat to dollar hegemony in the medium term," especially against the backdrop of rising trade barriers and increasing currency fragmentation.
As legislation is likely to bring stablecoins more closely into the U.S. financial system, its influence is likely to evolve from a crypto-native instrument to a core component of global dollar liquidity and fiscal support.
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HaoranClub
· 04-18 02:25
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Standard Chartered predicts that the supply of stablecoins could reach $2 trillion in 2028
Source: cryptoslate
Compilation: Blockchain Knight
Standard Chartered believes that if the upcoming U.S. legislation passes as expected, the stablecoin supply could swell to $2 trillion by 2028, creating $1.6 trillion in new demand for U.S. Treasuries.
The report, written by Geoffrey Kendrick, head of digital asset research at Standard Chartered Bank, expects that the U.S. Global Economic Network Stablecoin Act (GENIUS Act) will give a huge boost to stablecoins and their development, which will formalize the legal framework for stablecoins.
The bill passed the Senate Banking Committee in March and is expected to be formally signed into law by the summer.
The Global Economic Network Stablecoin Act establishes a regulatory framework that requires stablecoins to be fully reserved, with a high preference for highly liquid U.S. assets such as U.S. Treasuries as reserves. Standard Chartered estimates that as the supply of stablecoins expands, this will prompt sustained and large-scale purchases of government bonds.
"The scale of demand is large enough to absorb all the new U.S. Treasuries that Trump plans to issue during his second term," Kendrick said.
!
Unlike previous speculative growth, Standard Chartered expects stablecoin demand to be structurally linked to the fiscal market, with issuers needing to match the circulating supply of tokens with liquid reserves.
The projected demand for $1.6 trillion in Treasury bonds reflects only new stablecoins issued under these terms, excluding traditional tokens or broader digital assets.
The report explains that short-dated U.S. Treasuries will be the best reserve asset to manage liquidity and market volatility as issuers look to avoid a "maturity mismatch".
The rise of regulated dollar-pegged stablecoins could also boost global demand for the dollar, especially in countries facing currency instability or capital controls, the report notes.
Standard Chartered believes that the ability to access tokenized dollars through blockchain channels can deepen the dollar's international standing without relying on traditional banking infrastructure.
Kendrick added that this new way of exporting the dollar could serve as a "means of counteracting the current threat to dollar hegemony in the medium term," especially against the backdrop of rising trade barriers and increasing currency fragmentation.
As legislation is likely to bring stablecoins more closely into the U.S. financial system, its influence is likely to evolve from a crypto-native instrument to a core component of global dollar liquidity and fiscal support.