Crypto Stablecoins could be about to rewrite part of the history of American debt. A new study from Standard Chartered says the sector could generate up to $1 trillion in new demand for U.S. Treasuries by 2028.
As stablecoin issuers grow, they are expected to become significant buyers of government debt, making the digital dollar a major force in traditional finance.
Key takeaways
- $2 trillion trajectory: Analysts predict that the total stablecoin market capitalization will reach $2 trillion by the end of 2028, up from around $300 billion today.
- Treasure Rarity: Issuers are expected to absorb about $1 trillion in short-term Treasuries, creating a potential supply gap without Treasury adjustments.
- Regulatory factors: The GENIUS Act framework mandates high-quality liquid assets for reserves, requiring issuers to concentrate their holdings in the 0-3 month debt sector.
Why are stablecoins becoming a financing powerhouse?
Stablecoins are no longer just trading tools. They become regular buyers of US government debt. Since the passage of the GENIUS Act in July 2025, regulated issuers have been required to hold reserves of high-quality liquid assets, primarily short-term Treasury bills.
The supply now stands at nearly $300 billion. Standard Chartered views the recent slowdown as temporary and expects strong growth, particularly from emerging markets.
As people in high-inflation countries turn to dollar stablecoins, collateral reserves flow directly into U.S. debt. Crypto demand is supporting Treasury markets in the background.
Breaking down the $1 trillion projection
Standard Chartered analysts Geoffrey Kendrick and John Davies analyzed the mechanisms.
They expect stablecoins to reach a market cap of $2 trillion by 2028. This expansion alone could create $0.8 billion to $1 trillion in new demand for short-term Treasuries, primarily at the front end of the yield curve.
Simply put, stablecoin issuers could become some of the largest buyers of Treasuries. If emission patterns remain the same, the report suggests excess demand of around $0.9 trillion over the next three years.
About two-thirds of this growth is expected to come from emerging markets. And much of this would be net new demand, not a simple reshuffling of existing Treasury allocations.
This is a serious structural offer linked to American debt.
Implications for U.S. Debt Issuance
The magnitude is large enough that the US Treasury cannot ignore it.
If issuance does not adjust, short-term Treasuries could become tight. Treasury Secretary Scott Bessent has already hinted that stablecoins could become an important part of financing the US government.
This creates a two-way advantage. The dollar strengthens its role in digital markets and the government finds a regular buyer for its debt.
But closer integration means tighter oversight. As the new stable rules progress, coordination between private issuers and public debt management will only increase.
Innovation is occurring around different collateral models, but Treasuries remain the focus of regulatory approval.
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