Standard Chartered is of the opinion that the supply of Stablecoin could swell to $ 2 trillion by 2028, so that $ 1.6 trillion can be aimed at new demand for American treasury drawings if the coming American legislation is as expected.
The report, written by Stanchart’s Head of Digital Assets Research, Geoffrey Kendrick, expects the US Genius Act, which would formalize the legal framework for Stablecoins, will be a huge blessing for Stablecoins and their growth.
The bill cleared the Senate banking committee in March and is generally expected to be signed in the law per summer.
T-Bill Powerhouses
The brilliant act describes a regulating framework that mandatory fully reserved stablecoins, with a strong preference for very liquid American assets such as T-Bills. Standard Chartered estimates This will steer consistent and large-scale purchases of government debt as the Stablecoin delivery expands.
According to Kendrick:
“That level of demand is sufficient to absorb all fresh T-Bill issue that are planned during Trump’s second term.”
In contrast to earlier speculative growth, the bank expects the demand for Stablecoin to be structurally connected to tax markets, whereby emptents must correspond to the circulating token stock with liquid reserves.
The $ 1.6 trillion to projected T-Bill question reflects only newly issued stablecoins under these conditions, not wider older tokens or digital assets.
The report explained that shorter T-Bills would be the optimum reserve resistant to manage liquidity needs and market volatility, because Empenten would like to avoid a ‘durbsmatch’.
Stimulate dollar hegemony
According to the report, the rise of regulated, dollar-supported Stablecoins can also strengthen the global demand for the US dollar, in particular in countries that are confronted with currency instability or capital restrictions.
Standard Chartered argued that the ability to gain access to Tokenized Dollars can deepen the international role of the dollar via blockchain rails without trusting traditional bank infrastructure.
Kendrick added that this new form of dollar export could act as a “medium-term compensation against the current threat to USD-hegemony”, especially in the light of rising trade barriers and monetary fragmentation.
With legislation that is probably Stablecoins more closely matching the American financial system, their influence can grow from a crypto-native tool to a core component of global dollar liquidity and tax support.
