Stablecoin Market Projected to Surge by 2028 Amid Regulatory Developments

According to BlockBeats, analysts at Standard Chartered Bank have projected a significant increase in the total supply of stablecoins, anticipating a nearly tenfold rise by the end of 2028. The supply is expected to grow from approximately $230 billion to $2 trillion, driven by the anticipated formal regulation of the industry in the United States. Analysts suggest that this level of growth will stimulate demand for $1.6 trillion in U.S. short-term Treasury bonds over the next four years. This demand is expected to be sufficient to absorb all new short-term Treasury bonds anticipated to be issued during U.S. President Donald Trump's second term. The analysts estimate that the stablecoin industry will need to purchase $1.6 trillion in short-term Treasury bonds over the next four years, averaging $400 billion annually. This indicates that the industry could become the largest source of purchasing flow for all U.S. Treasury bonds. They note that, based on trends following the COVID-19 pandemic over the past four years, the only comparable demand in scale has come from foreign buyers, whose purchases have been distributed across short-term Treasury bonds, notes, and bonds.