Source: Blockchain Knight

Standard Chartered Bank believes that if the legislation to be introduced in the United States is passed as expected,Stablecoin supply may expand to $2 trillion by 2028, thereby generating $1.6 trillion in new demand for U.S. Treasury bonds。

The report, written by Geoffrey Kendrick, head of digital assets research at Standard Chartered Bank, predicts that the US's "GENIUS Act" will bring huge help to stablecoins and its development, which will formally establish the legal framework for stablecoins.

The bill was passed in the Senate Banking Committee in March and is expected to be officially signed into law in the summer.

The Global Economic Network Stablecoin Act has established a regulatory framework,It requires stablecoins to achieve full reserves and highly tend to use high-liquidity U.S. assets such as U.S. Treasury bonds as reserves. Standard Chartered estimates that as the supply of stablecoins expands, this will prompt people to continue and on a large scale to buy government bonds.

"There is a scale of demand that is sufficient to absorb all the new Treasury bonds planned for Trump's second term," Kendrick said.

Unlike previous speculative growth, Standard Chartered expects stablecoin demand to be structurally linked to the fiscal market, and issuers need to match the supply of tokens in circulation with liquid reserves.

The estimated $1.6 trillion Treasury bond demand only reflects newly issued stablecoins under these terms and does not include traditional tokens or broader digital assets.

The report explains that short-term U.S. Treasury bonds will be the best reserve asset to manage liquidity and market volatility as issuers want to avoid “maturity mismatch”.

The report notes that the rise of regulated dollar-pegged stablecoins may also enhance global demand for the dollar, especially in countries facing currency instability or capital controls.

Standard Chartered Bank believes that the ability to obtain tokenized US dollars through blockchain channels can deepen the US dollar's international status without relying on traditional bank infrastructure.

Kendrick added that this new method of exporting the dollar could serve as a “meaning to offset the threat to the current dollar hegemony in the medium term”, especially in the context of rising trade barriers and intensified currency division.

As legislation could bring stablecoins closer together with the U.S. financial system, its influence could evolve from Crypto native tools to a core component of global dollar liquidity and fiscal support.