Analysts at Standard Chartered project the stablecoin market to reach $2 trillion by 2028, generating approximately $1 trillion in new demand for U.S. Treasury bills. This surge in demand, coupled with anticipated Federal Reserve purchases, could create a substantial shortfall in T-bill supply.
Issuers like Tether and Circle already hold tens of billions in Treasury bills as reserves for their tokens. As the market expands, stablecoin issuers are expected to continue parking new capital in T-bills for yield and liquidity, channeling crypto wealth into U.S. government financing. The U.S. Treasury is monitoring this trend, which Standard Chartered believes will intensify. To accommodate this demand, Treasury Secretary Scott Bessent may increase T-bill issuance by reallocating from longer-dated bonds, potentially suspending 30-year bond auctions for three years and easing pressure on long-term yields.