Stablecoins May Reshape U.S. Treasury Market at $750B Threshold, Standard Chartered Says

The stablecoin market could begin to exert significant influence on traditional finance if it reaches approximately $750 billion, according to Geoff Kendrick, Standard Chartered’s head of digital assets research. This threshold, identified as a tipping point by industry players and policymakers, WOULD likely alter government debt issuance, monetary policy, and the structure of U.S. Treasury markets due to sheer demand.

Currently valued at $240 billion, the stablecoin market is projected to more than triple by the end of 2026. Growth is expected to accelerate with regulatory clarity, particularly if the bipartisan GENIUS Act passes—a development that could occur as early as next week.

"In the U.S., once the stablecoin market reaches a critical size, the volume of T-bills required to back stablecoins may necessitate a shift in planned issuance toward more short-term debt and less longer-tenor issuance," Kendrick noted. Such a shift could reshape the U.S. Treasury yield curve and impact demand for USD-denominated assets.

Stablecoins, which are pegged to stable assets like the U.S. dollar, typically maintain reserves in cash-equivalent instruments, predominantly short-term U.S. government securities. Their expanding role underscores the growing intersection between digital assets and traditional financial systems.