U.S. Stablecoin Supply May Reach $2 Trillion by 2028
The U.S. is set to pass the Guiding and Establishing National Innovation for U.S. Stablecoins (Genius) Act, possibly leading to a significant increase in stablecoin supply, according to Standard Chartered.
- The bank projects stablecoin supply could rise from $230 billion to $2 trillion by the end of 2028.
- Legislation aims to legitimize the stablecoin industry.
- The Senate Banking Committee cleared the bill in March, with potential approval from Congress and President Trump expected mid-year.
- An increase in issuance may necessitate an additional $1.6 trillion in Treasury bill purchases over four years.
- This demand could support U.S. dollar hegemony.
- Standard Chartered predicts a shift to a reserve model similar to USDC issuer Circle, which keeps 88% of reserves in Treasury bills.
- Tether holds 66% of its USDT reserves in Treasury bills.