Market News

Standard Chartered Predicts Stablecoin Surge to Drive $1 Trillion Demand for U.S. Treasury Bills by 2028

Research from Standard Chartered indicates that stablecoin issuers are poised to become major buyers of U.S. Treasury bills (T-bills).

The bank forecasts a surge in the stablecoin market, estimating it could reach a market cap of $2 trillion by the end of 2028.

As stablecoin demand increases, companies like Tether and Circle will require substantial reserves of "safe" assets, primarily in the form of T-bills.

Standard Chartered analysts predict these firms will purchase between $800 billion and $1 trillion in short-term debt to back their tokens.

If current government debt issuance stays the same, demand for T-bills may soon outstrip supply, potentially by about $900 billion over the next three years.

Currently, the stablecoin market sits around $300–$320 billion, signaling significant room for growth.

Tether and Circle have emerged as influential players in short-term U.S. government debt markets, holding reserves comparable to those of mid-sized nations.

This development indicates a structural shift in how stablecoins are managed, with increased exposure to Treasury securities.

The implications of stablecoin growth could lead to changes in Treasury operations, including a potential pause on 30-year bond auctions to accommodate demand.

As the intersection of crypto and traditional finance evolves, the role of stablecoins in the market grapples with increasing importance, reshaping the landscape for government debt.