U.S. Legislation Could Ignite $2 Trillion Stablecoin Boom by 2028: Standard Chartered
The U.S. stablecoin market could see explosive growth in the coming years, with total supply projected to surge nearly tenfold to $2 trillion by the end of 2028, according to a new report by Standard Chartered.
The bank attributes the expected rise to the anticipated passage of the Genius Act — short for Guiding and Establishing National Innovation for U.S. Stablecoins. The legislation, which cleared the Senate Banking Committee in March, is likely to receive full congressional approval and President Donald Trump’s signature by mid-year, analysts said.
“U.S. legislation would further legitimize the stablecoin industry,” said the report, led by analyst Geoff Kendrick. “We estimate this would cause total stablecoin supply to rise from $230 billion today to $2 trillion by year-end 2028.”
Stablecoins — cryptocurrencies pegged to fiat currencies or assets like gold — are vital tools in the digital asset ecosystem, enabling seamless trading and cross-border transfers. A more regulated and robust framework could unlock institutional confidence and fuel adoption at scale.
Standard Chartered highlighted the broader macro implications of such a boom. The projected growth in stablecoin issuance would likely require an additional $1.6 trillion in purchases of U.S. Treasury bills over the next four years. That level of demand would be sufficient to absorb all new T-bill issuance expected through the remainder of Trump’s second term.
Moreover, increased demand for stablecoins — and their backing in U.S. Treasuries — could reinforce the dominance of the dollar in global markets.
The bank expects issuers to converge toward a reserve model similar to that of Circle, the firm behind USDC. Circle currently holds 88% of its reserves in short-term Treasuries, with an average maturity of just 12 days. Tether, the market leader by volume, maintains 66% of its reserves in T-bills, the report noted.
