PANews reported on April 16 that according to The Block, a new report from Standard Chartered Bank predicts that the upcoming U.S. Stablecoin Regulation Act (GENIUS Act) will drive the global stablecoin scale from the current $230 billion to $20 trillion by the end of 2028. The bank's digital asset head, Geoffrey Kendrick, pointed out that the act will provide legal status for the industry and encourage stablecoin issuers to significantly increase their U.S. Treasury holdings.
The report shows that within the next four years, the stablecoin industry's demand for U.S. Treasuries is expected to reach $1.6 trillion - enough to absorb all new short-term government bonds issued during a potential second Trump term; calculated at an average of $40 billion per year, the stablecoin industry may become the largest buyer group in the U.S. Treasury market. Additionally, Circle has already allocated 88% of USDC reserves to short-term U.S. Treasuries, a model that may become the industry standard. Analysts believe that the rapid development of dollar stablecoins will consolidate the U.S. dollar's position in the short term, but in the long term, the emergence of stablecoins backed by other currencies may challenge the dollar's status. Notably, the act requires stablecoin reserve assets to have a maturity of no more than 93 days, which will prompt issuers to focus on short-term government bonds, further affecting the U.S. Treasury market structure.
