SC projects stablecoin growth could create $1T in demand for US T-bills

Standard Chartered (SC) has projected that stablecoin issuers could become key buyers of U.S. short-term Treasury bills (T-bills), The Block reported. According to the bank, the stablecoin market capitalization is expected to reach $2 trillion by 2028, which could generate between $0.8 trillion and $1 trillion in new demand for T-bills. This is because regulatory frameworks require issuers to hold highly liquid assets, such as short-term government bonds, as reserves. SC also analyzed that if this demand materializes, the U.S. Treasury might adjust its issuance structure to focus on short-term debt and could potentially halt 30-year bond auctions for up to three years.