By 2028, Stablecoin Market Could Reach $2 Trillion, According to Standard Chartered

U.S. Stablecoin Supply Could Explode to $2 Trillion by 2028 as Genius Act Nears Passage: Standard Chartered

The stablecoin market is on the verge of a massive expansion, with Standard Chartered forecasting a surge in supply to $2 trillion by the end of 2028, fueled by a potential legislative breakthrough in the U.S.

According to a Tuesday research report, the upcoming Genius Act — short for Guiding and Establishing National Innovation for U.S. Stablecoins — could serve as the catalyst that transforms the regulatory landscape for dollar-pegged digital assets. The bill, which cleared the Senate Banking Committee in March, is widely expected to become law later this year under President Donald Trump.

“Passage of the Genius Act would mark a milestone for the U.S. digital asset ecosystem,” analysts led by Geoff Kendrick wrote. “We believe it would legitimize stablecoins at scale, increasing supply from $230 billion today to $2 trillion by 2028.”

Stablecoins, often pegged to fiat currencies like the U.S. dollar, have become critical infrastructure in global crypto markets, enabling everything from low-fee remittances to liquidity on decentralized exchanges. The Genius Act would provide a regulatory framework for issuance and reserve management, which analysts say could bring more institutional adoption and investor confidence.

The report notes that such a rise in stablecoin circulation would create knock-on effects for U.S. Treasury markets, as most issuers back their coins with government debt. Standard Chartered estimates the surge would require $1.6 trillion in additional T-bill purchases over four years — enough to soak up the anticipated issuance for the remainder of Trump’s term.

“This demand for Treasuries would not only support government borrowing but also reinforce the U.S. dollar’s dominance globally,” the bank added.

Circle, the issuer of USDC, is seen as the model for future industry practices, holding nearly 90% of its reserves in short-duration T-bills. Tether, which issues USDT, currently allocates about 66% of its backing to similar assets, the report said.