Stablecoin Supply to Surge 770% by 2028 Driven by US Legislation

Standard Chartered has projected that the supply of stablecoins could surge to $2 trillion by the end of 2028, driven by forthcoming US legislation. The bank anticipates that the additional issuance of stablecoins will necessitate the purchase of $1.6 trillion in Treasury bills over the next four years. This significant growth is expected to be catalyzed by supportive US laws, including the GENIUS Stablecoin Act, which aims to enhance consumer safeguards and protect payment stablecoin users. The legislation is poised to double the current stablecoin supply from $230 billion to $2 trillion by the fourth quarter of 2028.

The expansion of the stablecoin market is seen as a pivotal development for the broader cryptocurrency industry. Standard Chartered's analysis highlights that the stablecoin sector, valued at $230 billion currently, is poised for substantial growth. This growth is attributed to the increasing adoption of stablecoins as a means of facilitating faster and more efficient global payments. The bank's projections underscore the potential for stablecoins to revolutionize international finance operations, providing a stable payment solution that minimizes the volatility associated with traditional cryptocurrencies.

The GENIUS Act sets out a regulatory framework that mandates fully reserved stablecoins, with a strong preference for highly liquid U.S. assets like T-bills. Standard Chartered estimates this will drive consistent and large-scale purchases of government debt as stablecoin supply expands. Unlike prior speculative growth, the bank expects stablecoin demand to be structurally tied to fiscal markets, with issuers needing to match circulating token supply with liquid reserves. The $1.6 trillion in projected T-bill demand reflects only newly issued stablecoins under these terms, not legacy tokens or digital assets more broadly.

The report explained that shorter-term T-bills would be the optimal reserve asset to manage liquidity needs and market volatility since issuers would want to avoid a “duration mismatch.” The rise of regulated, dollar-backed stablecoins may also reinforce global demand for the US dollar, particularly in countries facing currency instability or capital restrictions. Standard Chartered argued that the ability to access tokenized dollars through blockchain rails can deepen the dollar’s international role without relying on traditional banking infrastructure. With legislation likely to align stablecoins more closely with the U.S. financial system, their influence may grow from a crypto-native tool into a core component of global dollar liquidity and fiscal support.

According to the report, the rise of regulated, dollar-backed stablecoins may also reinforce global demand for the US dollar, particularly in countries facing currency instability or capital restrictions. Standard Chartered argued that the ability to access tokenized dollars through blockchain rails can deepen the dollar’s international role without relying on traditional banking infrastructure. The bank's projections underscore the potential for stablecoins to revolutionize international finance operations, providing a stable payment solution that minimizes the volatility associated with traditional cryptocurrencies. The success of stablecoins, particularly those like RLUSD developed by Ripple, is expected to drive the value of associated cryptocurrencies. For instance, the adoption of RLUSD could significantly boost the price of XRP, Ripple's native token. Analysts predict that if RLUSD captures 50% of the stablecoin market, the price of XRP could surge to $50. This potential price increase is underpinned by the growing demand for XRP as a liquidity provider for RLUSD transactions, particularly in global remittances and business payments.

The integration of stablecoins into financial operations is seen as a strategic move by Ripple to extend its business operations through new market opportunities. RLUSD, as a digital dollar, enables Ripple to offer businesses and individuals a stable payment solution. The successful adoption of RLUSD could position Ripple as a leading player in international finance, further driving the value of XRP. The growing acceptance of blockchain technology among institutional investors is expected to provide the necessary market liquidity for XRP to reach higher price ranges. In summary, the projected growth of the stablecoin market to $2 trillion by 2028, as forecasted by Standard Chartered, is set to be a transformative development for the cryptocurrency industry. The supportive US legislation and the increasing adoption of stablecoins for global payments are key drivers of this growth. The success of stablecoins like RLUSD is expected to have a positive impact on associated cryptocurrencies, potentially driving significant price increases and broader market acceptance.