Stablecoins Set to Scoop Up $1T in T-Bills by 2028: Standard Chartered
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by Vismaya VFebruary 23, 2026
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Stablecoins are set to play a significant role in reshaping the U.S. Treasury bill market, according to a report by Standard Chartered. The bank predicts that stablecoin market capitalization will grow to $2 trillion by 2028, up from its current level of approximately $309 billion. This growth is expected to generate $0.8–$1 trillion in new demand for short-term U.S. Treasury bills (T-bills), as stablecoin issuers increasingly hold these securities as reserves. When combined with potential purchases by the Federal Reserve, this demand could reach $2.2 trillion between now and 2028, creating a $0.9 trillion excess demand for T-bills. This imbalance could allow the U.S. Treasury to suspend its 30-year bond auctions for three years, according to the report.
The slowdown in stablecoin growth over recent months has been attributed to weaker digital asset markets and regulatory adjustments following the passage of the GENIUS Act last year. However, Standard Chartered’s analysts view this as a temporary, cyclical issue rather than a structural change. They maintain their long-term forecast of $2 trillion in stablecoin market capitalization by 2028, driven by the potential shift of up to $500 billion in deposits from traditional banks into stablecoins.
Experts warn that while the macroeconomic impact of stablecoins holding T-bills may be limited at smaller scales, it could become significant if the stablecoin market reaches substantial levels. For instance, a $2 trillion stablecoin market—roughly 30% of the $6–7 trillion T-bill market—could influence bill yields, funding conditions, and the Treasury
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Originally published on Decrypt on 2/23/2026