Standard Chartered Bank forecasts that stablecoin issuers will become the second largest buyers of U.S. Treasury bonds within three years, following the Federal Reserve. This prediction comes as the average daily trading volume of U.S. dollar stablecoins has surpassed $100 billion, outpacing Bitcoin and Ethereum. Current reports from Tether and Circle indicate that U.S. Treasury bonds constitute at least 80% of the $250 billion in stablecoin reserves, equating to $200 billion in demand for these bonds.
By 2028, the stablecoin market is expected to grow to $2 trillion, potentially driving demand for U.S. Treasury bonds to between $1.2 trillion and $1.6 trillion. This significant increase would position stablecoin issuers as key players in the U.S. debt market, second only to the Federal Reserve in terms of bond purchases.
Stablecoin Issuers Poised to Become Major Buyers of U.S. Debt
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