Standard Chartered Doubles Down on Crypto as Stablecoin Market Skyrockets
Another day, another legacy bank chasing the crypto hype train—but this time, it's serious.
Standard Chartered just turbocharged its digital asset division, betting big on stablecoins as the market hits record liquidity. Because nothing says 'trust' like a 169-year-old institution diving headfirst into volatile internet money.
The move comes amid surging demand for dollar-pegged tokens—turns out traders still want stability, even when gambling on speculative assets. Who knew?
Watch for the bank to launch custody services and 'blockchain solutions' (read: buzzword bingo) by EOY. Because if there's one thing crypto needs, it's more middlemen taking a cut.
Pro tip: When your corporate strategy includes 'please don't let Web3 leave us behind,' maybe rethink the whole 'digital transformation' thing.
Regulatory tailwinds
Interest in stablecoins has surged as the GENIUS Act, a U.S. bill that aims to establish clear rules for fiat-backed digital assets, nears passage.
Kendrick said the legislation could become law as early as this week, setting the stage for rapid expansion of the U.S. stablecoin market and unlocking broader adoption across financial institutions and public-sector entities.
Kendrick noted that clients now project a stablecoin market size of $750 billion by the end of 2026, up from approximately $250 billion as of July 15.
With regulatory clarity, stablecoin issuance is expected to broaden significantly, not only through major financial players but potentially also regional banks and local governments exploring tokenized cash instruments.
Beyond adoption, discussions also touched on macroeconomic implications: possible shifts in the U.S. Treasury curve, long-term effects on dollar liquidity, U.S. payment system reform, and stablecoin-driven financial stability risks in emerging markets.
Stablecoin infrastructure
Standard Chartered’s report suggests that the broader stablecoin sector may be evolving faster than previously anticipated.
Kendrick highlighted that the Digital Asset Market Clarity Act, a separate legislative effort, could pass by late September or early October, potentially accelerating the tokenization of real-world assets (RWAs) and the integration of DeFi rails.
On-chain data shows consistent growth in stablecoin balances across all wallet sizes, including centralized exchanges, DeFi platforms, and mid-sized retail wallets, indicating broadening use cases and growing global demand.
Kendrick’s findings and Standard Chartered’s trading desk launch reflect a pivotal shift in institutional crypto strategy. While Bitcoin’s role as a store of value remains intact, the infrastructure and policy agenda now appear firmly focused on stablecoins as the backbone of programmable money.
