Stablecoin Market Cap May Surge to $2T by End of 2028, Says Standard Chartered

U.S. Stablecoin Supply Could Hit $2 Trillion by 2028 as Genius Act Gains Momentum: Standard Chartered

The U.S. stablecoin market may be on the brink of exponential growth, with total supply projected to balloon to $2 trillion by the end of 2028, according to a new research note from Standard Chartered.

Analysts at the bank said the catalyst behind this growth would be the likely passage of the Genius Act (Guiding and Establishing National Innovation for U.S. Stablecoins), a bill aimed at providing clear regulation and legitimacy to the stablecoin sector. The legislation has already passed through the Senate Banking Committee and is expected to be signed into law by President Donald Trump later this year.

“Stablecoin legislation in the U.S. would offer much-needed clarity and regulatory backing, unlocking the next wave of institutional adoption,” said the team led by Geoff Kendrick. “We believe this would propel total stablecoin supply from $230 billion today to $2 trillion by 2028.”

Stablecoins — digital assets pegged to stable currencies like the U.S. dollar — have become a backbone of the crypto economy, facilitating trading, payments, and global remittances. Their expansion could have significant ripple effects beyond crypto.

Standard Chartered’s report highlighted that such a dramatic increase in stablecoin supply would necessitate an additional $1.6 trillion in Treasury bill purchases over four years — effectively soaking up all projected T-bill issuance during Trump’s second term.

This growing demand for dollar-backed reserves would not only support U.S. Treasury markets but also bolster the dollar’s global dominance, the report noted.

The bank expects the industry to increasingly follow Circle’s model, with the USDC issuer holding 88% of reserves in short-duration Treasuries. Tether, the largest stablecoin provider, currently allocates 66% of its USDT reserves to similar instruments.