A report by Standard Chartered suggests that the market for stablecoins, such as USDT and USDC, could expand significantly, reaching $2 trillion by the end of 2028. This growth is expected to stem from the forthcoming passage of the Genius Act in the U.S., which will legitimize the stablecoin industry and likely lead to a tenfold increase in supply, rising from the current $230 billion. The proposed legislation has already cleared the Senate Banking Committee and is anticipated to be enacted soon. The increase in stablecoin supply would necessitate additional purchases of U.S. Treasury bills, amounting to $1.6 trillion over the next four years, which could have substantial implications for U.S. dollar dominance. Analysts note that the industry may begin to adopt models similar to that of USDC issuer Circle, with significant portions of reserves held in Treasury bills, thereby confirming the pivotal role stablecoins play in both the cryptocurrency markets and international money transfers.

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