Standard Chartered: Stablecoin Issuers Expected to Become the Second Largest Buyers of US Treasuries After the Federal Reserve Within Three Years

According to a report by Jinse Finance, since June, the average daily trading volume of USD stablecoins has exceeded $100 billion, significantly surpassing the trading volumes of Bitcoin and Ethereum. Based on the Q1 reports from Tether and Circle, it can be estimated that out of the total $250 billion in USD stablecoins, at least 80% of the reserve assets are held in US Treasuries. This equates to an additional $200 billion in demand for US Treasuries. Standard Chartered Bank predicts that by 2028, the stablecoin market size will drop to $2 trillion, corresponding to a demand for US Treasuries of $1.2 trillion to $1.6 trillion, making stablecoin issuers the second largest buyers of US Treasuries after the Federal Reserve.