You Won’t Believe How Big Stablecoins Could Get By 2028! Bankers Are Sweating!

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What to know:

  • With the Genius Act on the horizon, Standard Chartered predicts the stablecoin fountain may gush forth with legendary abundance.
  • Two trillion dollars by 2028—yes, trillion, comrade! The era of humble billions may soon look embarrassingly quaint.
  • All this digital sorcery could prod U.S. Treasuries and the mighty greenback into new dances—whether joyful waltz or anxious twitch, only time will tell.

Allow me to regale you, dear reader, with the tale of the Guiding and Establishing National Innovation for U.S. Stablecoins Act—mercifully, the “Genius” Act (a name destined for irony). The United States is poised to pass this pièce de résistance of legislative genius, which, according to those financial bards at Standard Chartered, may soon conjure not just a mere handful of coins, but practically an avalanche, a flood, a veritable monsoon of stablecoins. Picture them raining down, jingling musically on the heads of startled senators and bankers alike. 💸💸💸

The analysts, led by one Geoff Kendrick—clearly a man with stamina for large numbers—maintain that we’ll see the supply of stablecoins balloon like a bureaucrat’s waistcoat after an especially lavish luncheon: from a modest $230 billion to a resplendent $2 trillion by year’s end 2028. Not bad for digital tokens best known for their uncanny resemblance to the U.S. dollar and their even cannier ability to baffle one’s grandmother.

Stablecoins, should you not already be acquainted, are the modern version of magic beans: cryptocurrencies pegged to something sturdy like the U.S. dollar or, failing that, gold—because what is finance if not a fairy tale about trust? These wondrous tokens aid in international money shuffling, and, let’s be honest, help the wily avoid a touch of government scrutiny on the side.

Back in March, the Genius Act glided through the Senate Banking Committee with all the suspense of a provincial train schedule. Congress is likely to nod it through, and even President Donald Trump—returning like an overripe pumpkin in the autumn fields—appears ready to sign. One expects the ceremony may involve gold pens, an American flag, and a variety of confused bystanders.

The bank’s report practically quivers with the implications. Such a windfall of digital coins would see the U.S. Treasury pressing more T-bills than an overeager baker at Easter, requiring an extra $1.6 trillion in fresh debt over the next four years. Apparently, that would mop up the entirety of new bills from the next Trumpian quadrennium—if nothing else, a neat trick.

Dollar hegemony, that beloved child of global finance, might even receive a hearty moral boost, fueled by insatiable demand for dollar-backed digital chips. Can stablecoins make the dollar great(er) again? Stay tuned, citizens.

In the twilight glow of this financial operetta, Standard Chartered expects the industry to mimic Circle—the USDC folks who keep 88% of their reserves in fresh, short-dated Treasury bills, locked up for all of 12 days on average. Tether, ever the maverick, chooses the slightly thriftier option at 66%—such restraint!

So, as the bankers and lawmakers prance about, one can only marvel at the strange spectacle. The ballad of stablecoins continues—equal parts gold rush, state circus, and existential punchline. To $2 trillion or bust! 🚀

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2025-04-15 17:51