📈 Standard Chartered Predicts $2 Trillion Stablecoin Market by 2028
🌍 Standard Chartered bank has released a report forecasting a dramatic increase in stablecoin supply by the end of 2028, estimating a nearly ten-fold rise if the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act is passed this year. Currently, there are two bills under consideration by Congress: the GENIUS Act in the Senate and the Stablecoin Transparency and Accountability for a Better Ledger Economy (STABLE) Act in the House. Reports suggest that President Donald Trump intends to sign both into law before Congress's August recess.
📊 If these bills are enacted by August, Standard Chartered predicts that the growth rate of non-trade-related stablecoin transactions could double from 50% to 100% per year. This would propel the stablecoin market to exceed $2 trillion in market capitalization, a significant increase from the current size of approximately $230 billion. The report states,
U.S. stablecoin legislation is expected soon, with the GENIUS Act likely to be passed by the summer.
It further emphasizes that this legislation could facilitate an increase in total stablecoin supply from $230 billion today to $2 trillion by end-2028.
💱 The report also highlights the potential of stablecoins to enhance U.S. hegemony. It notes that Trump's tariff policies have weakened the U.S. dollar and diminished demand for U.S. assets. However, if USD-denominated stablecoins were to reach a $2 trillion market cap, it could significantly bolster the greenback's global dominance. The report explains,
As stablecoin usage increases, this additional source of USD demand should support USD hegemony.
It adds that such dominance would serve as a medium-term offset against current threats to USD hegemony due to tariff concerns.