The post U.S. Treasury may boost T-Bill issuance as stablecoins eye $2 trillion market cap: StanChart appeared on BitcoinEthereumNews.com.

Standard Chartered still expects the stablecoin market to reach $2 trillion by the end of 2028, which should translate into around $1 trillion in new Treasury bill demand, the bank said in a Monday report. As of early 2026, the total stablecoin market capitalization is roughly $300-$320 billion. “This will result in c. $0.8-$1.0 trillion of fresh demand for T-bills (for use as reserves) from stablecoin issuers over that period,” wrote Geoff Kendrick, head of digital asset research, and U.S. rates strategist John Davies. Combined with $1-$1.2 trillion in projected Federal Reserve buying, total new T-bill demand could hit about $2.2 trillion through 2028, the report said. That compares with roughly $1.3 trillion in net new supply if bills’ share of total debt remains unchanged, implying a potential shortfall of $0.9 trillion. Stablecoin issuers such as Tether and Circle (CRCL) have become major buyers of short-term U.S. government debt, holding tens of billions of dollars in Treasury bills as reserves backing tokens such as USDT and USDC. Tether alone has disclosed T-bill holdings that rival those of mid-sized sovereign investors, while Circle also keeps a significant share of its reserves in short-dated Treasuries via money market funds. As the stablecoin market grows, issuers typically park new inflows into T-bills to earn yield while maintaining liquidity, effectively channeling crypto-driven capital into U.S. government financing and reinforcing demand at the front end of the yield curve. The Treasury said in its February 4 Quarterly Refunding Announcement (QRA) that it “is monitoring SOMA purchases of Treasury bills and growing demand for Treasury bills from the private sector,” a trend Standard Chartered expects to intensify. The analysts said the projected excess demand gives Treasury Secretary Scott Bessent scope to lift T-bills’ share of issuance. Raising that share by 2.5 percentage points over three years…

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Filed under: News - @ February 23, 2026 4:26 pm