Standard Chartered Predicts Stablecoin Market Cap to Reach $2 Trillion by 2028

By 2028, the combined market value of stablecoins is expected to grow to approximately $2 trillion, according to an assessment by Standard Chartered, reports The Block.

Currently, this figure is estimated at $236.2 billion.

The anticipated driver is the expected adoption of the GENIUS Act in the United States, which provides a regulatory framework for the stablecoin sector.

The bill has received approval from the US Senate Banking Committee and has moved to the upper chamber of Congress for consideration.

Standard Chartered believes that if the GENIUS Act is approved, it will generate additional demand for US Treasuries amounting to $1.6 trillion. This corresponds to the net borrowing needs of Donald Trump’s administration over his entire second term as president.

As a result, stablecoin issuers will become leaders among buyers of US Treasuries, the experts noted. 

USDC as a Benchmark

Analysts forecast that USDC will establish itself as the industry standard. The token-issuing firm Circle holds 88% of its reserves in treasury bills with an average maturity of 12 days. Tether is expected to adopt a similar model, they added.

The realization of such expectations will increase the T-Bill holdings of issuers from the current $150 billion to approximately $1.75 trillion.

The anticipated growth in stablecoin reserves will boost demand for the US dollar. In the short term, this will support the USD’s hegemony amid the negative impact of trade disputes on its status, experts emphasized.

In the long term, there may be a risk of a shift to tokens backed by other currencies or a combination thereof, which could weaken the dollar’s position.

Legislative Efforts

The digital asset markets working group formed by Trump in January identified the development of a regulatory framework for stablecoins as a priority. 

In the House of Representatives, an alternative stablecoin regulation bill, the STABLE Act, is being advanced.

Senate Banking Committee Chairman Tim Scott expressed confidence that the GENIUS Act will be signed in August.

Earlier, the FT reported on plans by several global banks and fintech companies to launch their own coins to capture a share of the rapidly growing market.