The banking group Standard Chartered Forecasts explosive growth of the StableCoin market. It is about Cryptocurrenciesthat are coupled to fiat currencies-for example to the US dollar. For several reasons, analysts assume that this market will become tenfolds in the coming years.
New law accelerates the adoption of “stable” cryptocurrencies
In a report on Tuesday, April 15, analysts from Standard Chartered,, that the entire range of stable coins will increase to $ 2 trillion by the end of 2028. That would mean that the offer is tenfold within four years.
One reason for this expected explosive development is new legislation in the United States. The so -called Genius law is currently the congress and was approved by the Senate last month. The law is expected to come into force in summer.
The genius law has a positive effect on stable coins because it gives the industry legitimacy. At the same time, it places strict demands on the way the underlying reserves must be regulated in order to ensure the stable value of the coins.
The impact on the US dollar
If the StableCoin market actually grows so strongly, this will be an enormous demand for Treasury Bills (T-BILLS) generate-short-running US state bonds. These are used as a reserve to keep the value of stable coins stable on the US dollar.
Standard Chartered Expects that the StableCoin industry will invest a total of $ 1.6 trillion in T-Bills within four years. “This indicates that this sector could cause the largest purchase current of all sectors within the US state bond market,” said the analysts.
In addition, the increasing demand for stable coins could strengthen the US dollar in this way. Standard Chartered Calculate that the demand for the dollar will increase and that it could establish himself as a preferred currency, for example.
Circle as a model
The analysts assume that other StableCoin companies are the example of Circle will follow. The reserves of Circle 88 % consist of short -term government bonds with an average term of 12 days. The genius law allows a maximum term of 93 days, but analysts expect emitters to avoid risks and therefore rather Circle conservative model.
The largest stable coin emittent is currently Tether, the company behind Tether (USDT). According to the report, 66 % of the USDT reserves are currently made of T-Bills. In addition, Tether also holds Bitcoin, which would no longer be considered a legitimate reserve under the genius law.