U.S. Treasury may boost T-Bill issuance as stablecoins eye $2 trillion market cap: StanChart

Standard Chartered projects that the stablecoin market capitalization will reach $2 trillion by the end of 2028, generating approximately $0.8 to $1.0 trillion in fresh demand for U.S. Treasury bills (T-bills) as reserves. Combined with projected Federal Reserve buying, this could lead to a total new T-bill demand of about $2.2 trillion through 2028, potentially creating a $0.9 trillion shortfall against current supply projections if the T-bill share of total debt remains constant. Stablecoin issuers like Tether and Circle already hold significant amounts of T-bills. The analysts suggest that the U.S. Treasury, which is already monitoring this private sector demand, could increase the share of T-bill issuance by 2.5 percentage points over three years to offset this gap, which could involve suspending 30-year bond auctions for three years and easing upward pressure on long-term yields. Despite recent cyclical headwinds slowing stablecoin growth just above $300 billion, Standard Chartered maintains its long-term view that stablecoins will reshape U.S. rate markets through this incremental T-bill demand.

(Source：CoinDesk)