Stablecoins to drive $1T surge in US Treasury demand

Standard Chartered forecasts stablecoins could drive $1T in new U.S. Treasury demand by 2028, reshaping government debt strategies.

Standard Chartered predicts that the stablecoin market capitalization could reach $2 trillion by 2028. This growth is expected to generate up to $1 trillion in new demand for U.S. Treasury bills, as stablecoin issuers will need to hold reserves in high-quality liquid assets, primarily short-term government debt, due to regulatory requirements like the GENIUS Act. As stablecoin issuers become major buyers of U.S. T-bills, a supply shortfall may occur unless the Treasury adjusts its issuance strategy. The U.S. government could respond by increasing short-term debt issuance and potentially suspending 30-year bond auctions for several years. The rising adoption of stablecoins, particularly in emerging markets, is anticipated to channel more capital into U.S. Treasury markets, potentially reshaping traditional government financing models.