The StableCOin market could begin to reshape traditional funding if it grows to around $ 750 billion, according to Geoff Kendrick, Standard Chartered’s head of Digital Assets Research.
Kendrick, who wrote in a note on Tuesday after a week’s long trip through Washington, New York and Boston, said there is a growing consensus among the crypto industry’s players, fund managers and politicians that this $ 750 billion marks would be the tenth point where stableecoins are starting to affect state debt, monethic politics and the US state.
The current stableecoin market is around $ 240 billion. But Kendrick’s contacts expect it more than triple by the end of 2026, driven by the extension of use and regulatory clarity, especially if the Bipartisan Genius Act becomes a step that could happen next week.
“In the United States, when the stablecoin market comes to a certain size, the amount of T-bills required to support stableecoins will probably require a shift in planned issuance across the curve towards more T-BILL issuance, less longer-Tior issuing,” Kendrick wrote. “This has potential consequences for the form of the US state course yield basket and demand for USD assets.”
StableCoins-Cryptocurrencies designed to maintain a fixed value, usually $ 1 is typically supported by cash equivalent reserves, most often the short-term US government debt. As demand increases, it also makes the need to have large amounts of government bonds, which puts stablecoins on a potential collision course with traditional fixed income markets.
Kendrick met with a cross-section of market participants during his US visit, including Bitcoin mining workers, crypto-native companies, traditional hedge funds and decision makers, he said. Their almost unanimous focus: stableecoins.
Market participants expect a wave of stablecoin issuing, not only from cryptic companies, but possibly from banks and even local authorities.
Emerging markets are perhaps the most immediately affected. Kendrick marked concern that individuals in these regions use stableecoins as a digital savings vehicle that draws capital away from local banking systems and central bank reserves. It can challenge economic stability in countries that depend on the US dollar liquidity to manage fixed exchange rates or capital control.
On the US front, stableecoin was able to move corporate chains away from traditional banking and to tokenized cash alternatives. But how much of their cash businesses moves on the chain-and how fast-offers insecure.
The growing attention is reflected in public markets. Shares of Circle (CRCL)The issuer of USDC stableecoin has risen 540% since its public debut last month. Run-up signalizes the investor’s confidence in stableecoins as a central pillar in the next phase of digital financing.
