Genius Act Could Ignite Stablecoin Boom, Pushing Market to $2 Trillion by 2028: Standard Chartered

The U.S. stablecoin sector may be poised for explosive growth, thanks to upcoming legislation that could provide the regulatory clarity the industry has long awaited. According to a new report from Standard Chartered, the total stablecoin supply could surge nearly 10-fold to $2 trillion by the end of 2028.

The Guiding and Establishing National Innovation for U.S. Stablecoins (Genius) Act, expected to be passed in the coming months, is seen as a key driver of this projected expansion. Analysts led by Geoff Kendrick say the act’s passage would legitimize stablecoins in the U.S. and usher in a new era of institutional participation.

“Regulatory clarity would be a turning point for stablecoins,” the report said. “We estimate supply could rise from $230 billion today to $2 trillion within four years.”

Stablecoins — digital assets pegged to stable assets like the U.S. dollar — are widely used for trading, payments, and global money transfers. The Genius Act has already cleared the Senate Banking Committee and is likely to receive Congressional approval and the signature of President Donald Trump later this year.

Standard Chartered also emphasized that the rise in stablecoin issuance would bring broader macroeconomic implications, particularly in U.S. debt markets. The projected $1.6 trillion boost in stablecoin reserves would likely be funneled into short-term Treasury bills, effectively absorbing new government debt throughout Trump’s second term.

This demand could reinforce the U.S. dollar’s global dominance, the bank added.

The report also anticipates a shift toward models like that of Circle, the issuer of USDC, which holds the vast majority of its reserves in T-bills with an average duration of 12 days. Tether, the top stablecoin issuer, holds 66% of reserves in T-bills, according to the report.