Stablecoins could drive $1 trillion in T-bill demand, giving Treasury room to shift issuance: Standard Chartered

Standard Chartered research suggests that as stablecoin market capitalization grows towards an expected $2 trillion by 2028, issuers will accumulate $0.8 to $1 trillion in short-term U.S. Treasury bills as reserve assets, making them major buyers.

This significant demand, concentrated in the 0 to 3-month sector due to requirements under the GENIUS Act, could create a projected $0.9 trillion shortfall in T-bills if the Treasury does not adjust issuance, given other demand factors like the Federal Reserve's purchases.

To accommodate this, the Treasury could shift issuance by increasing the share of T-bills in total debt, potentially allowing for the suspension of 30-year bond auctions for several years, a move signaled as possible by Treasury Secretary Scott Bessent.

(Source：The Block)