Stablecoins Set to Scoop Up $1T in T-Bills by 2028: Standard Chartered
Stablecoin issuers are expected to become major buyers of short-term U.S. government debt within three years, with stablecoin market capitalization projected to reach $2 trillion by 2028, up from about $309 billion in 2024. This growth is anticipated to drive $0.8–$1.0 trillion in additional demand for U.S. Treasury bills, as issuers hold these as reserves. Combined with expected Federal Reserve and Treasury activity, total new T-bill demand could reach $2.2 trillion by 2028. Without increased T-bill issuance, their scarcity could rise, potentially requiring a shift in supply from longer-dated Treasuries to T-bills. Although stablecoin growth has slowed recently, analysts see this as temporary, maintaining their bullish long-term forecasts. If stablecoins reach a $2 trillion market cap—about 30% of the T-bill market—reserve flows could begin to affect bill yields and Treasury issuance. Some warn this could concentrate liquidity risks, but note that buffers generally protect against immediate asset liquidation unless confidence in a stablecoin collapses.
