Standard Chartered Bank: The market capitalization of stablecoins will reach $2 trillion by the end of 2028, bringing an additional $0.8 trillion to $1 trillion in demand for U.S. Treasury bonds.

BlockBeats News, February 23 — According to The Block, a recent study by Standard Chartered Bank indicates that stablecoin issuers are expected to become one of the largest buyers of U.S. Treasury bonds, which could reshape the U.S. government’s financing methods over the next few years.

The analysts, led by Geoffrey Kendrick, Head of Global Digital Asset Research at the bank, and John Davies, U.S. Interest Rate Strategist at Standard Chartered Bank, stated that they still expect the market capitalization of stablecoins to reach $2 trillion by the end of 2028. This expansion will bring approximately $0.8 trillion to $1 trillion in additional demand for U.S. Treasuries, as issuers will accumulate short-term government bonds as reserve assets. Stablecoin issuers are becoming the largest buyers of U.S. Treasuries.

They also added that if the issuance model remains unchanged, this demand could lead to an excess demand of about $0.9 trillion in government bonds over the next three years.

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