Guidance and establishment of National Innovation for US StableCeCoins (Genius) Act is expected to be adopted in the US in the coming months, and it can trigger a nearly 10 times jump in the stablecoin supply, Investment Bank Standard Chartered said in a research report on Tuesday.

The US legislation “would further legitimize the stablecoin industry,” analysts wrote by Geoff Kendrick, adding that “we estimate that this would cause the total stablecoin supply to rise from $ 230 billion to $ 2TN at the year after the year 2028.”

Stableecoins are cryptocurrencies whose value is bound to another asset, such as the US dollar or gold. They play an important role in cryptocurrency markets and are also used to transfer money internationally.

The bank noted that the proposed legislation was cleared by the Senate Bank Committee in March and is likely to be adopted by Congress and then signed by President Donald Trump around the middle of the year.

An increase in the stableecoin supply has consequences for US state purchases and the US dollar hegemony, the report said.

The bank’s estimated increase in stableecoin issuing would require the extra purchase of $ 1.6 trillion of the Treasury’s bills over the next four years.

“This would be enough to absorb all the fresh T-Bill issuance planned for the rest of Trump’s second period,” wrote the authors.

Increased demand for dollar-denomined stablecoin reserves would result in further demand for US dollars, the bank said, and this should support the hegemony of dollar.

Standard Chartered said it expects the industry to move to the model used by USDC issuer Circle, the second largest stablecoin issuer, which has 88% of its reserves in Treasury bills with an average duration of 12 days.

Tether, the largest stableecoin issuer, owns 66% of its USDT reserves in the Treasury Bills, noted the report.

Read more: XRP could hit $ 12.5 before President Trump’s period ends: Standard Charter