Banking Giant Standard Chartered Forecasts That Stablecoin Supply Will Increase 10 Times From Current Levels By The End Of 2028! Here Are The Details

Standard Chartered predicts that the global stablecoin supply will rise to $2 trillion by the end of 2028, nearly ten times the current level of around $230 billion.

Standard Chartered Forecasts a $2 Trillion Stablecoin Market by 2028 Due to U.S. Regulatory Effects

The forecast detailed in a new report published today is based on the expectation that upcoming US legislation will legitimize and accelerate the adoption of the rapidly growing digital asset class.

Bank analysts led by Geoffrey Kendrick, the global head of digital asset research at Standard Chartered, say that it is likely that the U.S. National Innovation for Stablecoins Act (GENIUS), which passed last month in the Senate Banking Committee, will become law this summer.

The law is expected to help significantly scale the industry in the coming years by providing regulatory clarity regarding stablecoins.

The report stated, "We predict that this will cause the total stablecoin supply to rise from 230 billion dollars today to 2 trillion dollars by the end of 2028." "This has implications for both U.S. Treasury purchases (for reserve purposes) and USD hegemony."

Stablecoins May Be Major Buyers of U.S. Treasury Bonds

The expected growth will have significant ripple effects on the broader financial system, especially the U.S. Treasury market.

Analysts predict that the stablecoin industry will need to purchase $1.6 trillion in U.S. Treasury bonds over the next four years to meet reserve requirements. This demand will make the sector one of the largest bond buyers, competing with foreign central banks.

Analysts stated that "based on the post-COVID trends of the last four years, the only demand of similar magnitude came from foreign buyers."

Standard Chartered also believes that this rapid expansion has strengthened the dominance of the US dollar in global trade and finance. Analysts argue that the increasing demand for US dollar-backed stablecoins will bolster the dollar's status, at least in the medium term.