Standard Chartered Sees Stablecoin Boom to $2 Trillion by 2028

As of April 2025, the total market cap of all stablecoins stands at approximately $230 billion, led by dominant players like Tether (USDT) and Circle’s USD Coin (USDC). If realized, Standard Chartered’s forecast would mark a transformative leap for the sector, with stablecoins becoming one of the most important vehicles for liquidity, cross-border payments, and decentralized finance infrastructure.

Geoff Kendrick, Standard Chartered’s Head of FX and Digital Asset Research, noted that the GENIUS Act is expected to provide a comprehensive legal framework that supports both innovation and investor protection. According to the bank’s April report, the legislation is anticipated to drive a substantial increase in U.S. dollar-backed stablecoins and could become a key catalyst for stablecoin market growth through the end of the decade.

The GENIUS Act, currently advancing through the U.S. legislative process, has already cleared the Senate Banking Committee and enjoys bipartisan support. President Donald Trump, serving his second term, is expected to sign the bill into law before year-end. The legislation mandates 1:1 backing of stablecoins with high-quality liquid assets such as short-term U.S. Treasuries and establishes federal licensing for issuers, subject to oversight by the Office of the Comptroller of the Currency (OCC).

Standard Chartered estimates that if the stablecoin supply reaches $2 trillion, issuers could collectively hold $1.6 trillion in U.S. Treasury bills, significantly impacting global demand for U.S. government debt. In essence, stablecoins could become the largest new institutional buyer class of Treasuries—potentially absorbing all planned issuance for the remainder of President Trump’s term.

Such a development would reinforce the U.S. dollar’s supremacy in global markets, especially as stablecoins gain wider adoption for remittances, trade finance, and tokenized asset settlement.

The report highlights Circle and Tether as two entities already operating with high Treasury exposure. Circle, according to its latest reserve report, holds 88% of USDC’s backing in short-dated Treasuries, while Tether maintains approximately 66% in similar instruments.

These models are being touted as regulatory blueprints for the broader industry. With licensing and oversight, more stablecoin issuers are likely to emerge—including banks, fintechs, and tokenized fund managers—further legitimizing the sector.

Meanwhile, U.S.-based payment processors and neobanks are reportedly preparing to integrate stablecoins into their settlement infrastructure, anticipating a green light from regulators.

Not everyone is celebrating the rise of dollar-backed stablecoins. In Europe, Italy’s Economy Minister Giancarlo Giorgetti warned that the widespread adoption of U.S. stablecoins could marginalize the euro in international markets. Giorgetti has called on the European Central Bank to accelerate its efforts toward launching a digital euro, citing financial sovereignty concerns.

“The general focus these days is on the impact of trade tariffs. However, even more dangerous is the new U.S. policy on cryptocurrencies and in particular that on dollar-denominated stablecoins.”

China has also taken note. Officials there continue to restrict the use of foreign stablecoins domestically while promoting the digital yuan (e-CNY) as a state-backed alternative in Belt and Road economies.

With clear regulatory guidelines on the horizon, Standard Chartered believes the stablecoin sector is poised to become a cornerstone of both traditional and decentralized finance. The institutionalization of stablecoins, once a speculative fringe innovation, is now emerging as a key pillar of U.S. economic strategy and monetary influence.