Standard Chartered: Stablecoins Could End US 30-Year Bond Issuance | US Crypto News
Standard Chartered reports that stablecoin demand could reshape the US bond market, potentially ending 30-year bond issuance.Summary
A new report from Standard Chartered suggests that increasing demand for Treasury bills from stablecoin issuers could significantly alter the US debt financing strategy. The bank projects between $0.8 trillion and $1 trillion in new demand for T-bills by 2028, potentially reaching $2.2 trillion when combined with Federal Reserve purchases. This excess demand could allow the US Treasury to reduce long-term bond supply and even suspend 30-year bond auctions for the next three years. The majority of this demand is expected to come from emerging markets, representing net new demand, while developed markets will largely see substitution of existing holdings. This shift could initially flatten the US Treasury yield curve, but long-term effects will depend on factors like term premia and market sentiment. Despite recent stagnation, stablecoin market capitalization is projected to reach $2 trillion by 2028.
(Source：BeInCrypto)