Standard Chartered: Stablecoin Growth Could Boost US Treasury Bill Demand by $1 Trillion

$2 Trillion Target for the Stablecoin Market A new analysis published by Standard Chartered predicts that the stablecoin market capitalization will reach $2 trillion by the end of 2028.
The report, prepared by Geoff Kendrick, the bank's head of digital asset research, and John Davies, US rates strategist, states that this growth will create approximately $1 trillion in new demand for US Treasury bills (T-bills).
This development is highlighted as a factor that could pave the way for the US Treasury Department to reshape its borrowing strategies and increase short-term debt issuance.
Critical Shift in Supply and Demand Balance According to the report, Treasury bill purchases by stablecoin issuers to back their reserves will significantly impact market dynamics.
When combined with the Federal Reserve's (Fed) estimated $1.2 trillion in purchases, total new demand for Treasury bills could reach $2.2 trillion by 2028.
Current projections suggest that if the share of bills within the total debt remains unchanged, net new supply will stay around $1.3 trillion.
This situation indicates that a supply gap of approximately $900 billion could emerge in the market.
Institutional Reserves and Market Impact The reserve management strategies of giants in the stablecoin market have begun to play a critical role in US government financing.
This expansion in the stablecoin market, which is expected to reach $300-320 billion by early 2026, is anticipated to strengthen demand at the front end of the yield curve by directly channeling crypto-sourced capital into US public finance.