Standard Chartered Predicts $2 Trillion Stablecoin Boom

Welcome to the US Morning Crypto News Briefing—your essential rundown of the most important developments in crypto for the day ahead.

Grab a coffee to see what Standard Chartered says about stablecoin growth in the face of new legislation that has supposedly spooked Italy’s economy minister and has TradFi giants like JPMorgan wanting in on the action.

Stablecoin Volume To Go Berserk, Standard Chartered Says

Stablecoins are today’s top US crypto news, drawing context from the recently introduced GENIUS Act and STABLE Act. The bipartisan GENIUS Act balances state and federal oversight, supporting innovation. Specifically, it creates a federal framework mandating 1:1 asset reserves, transparency, and anti-money laundering compliance for issuers.

Meanwhile, the STABLE Act reinforces this with strict reserve rules and audits, ensuring stability and consumer trust. These laws aim to protect users while fostering growth in digital currencies, paving the way for secure stablecoin adoption.

According to Standard Chartered, the new legislation, which is due for implementation in a few months, could cause stablecoin volume outstanding to go berserk.

“The volume of stablecoins outstanding is set to explode after the US passes legislation in a few months from now,” Standard Chartered Head of Digital Asset Research Geoff Kendrick told BeInCrypto.

Kendrick says stablecoins will go from $230 billion to $2 trillion by the end of 2028, adding that growth will require an extra $1.6 trillion of US Treasury bills to be held as reserves.

“That is all of the planned new Treasury bill issuance over that period,” he added.

The Standard Chartered executive is not alone. Italy’s Economy Minister Giancarlo Giorgetti shares the sentiment, anticipating stablecoin growth amid the Trump administration’s deregulation push.

European Sovereignty at Risk?

Speaking at a financial forum in Milan, Giorgetti expressed deep concern over the rise of US dollar-backed stablecoins and the broader implications of Washington’s crypto shift. He acknowledged that stablecoins offer European citizens a convenient, banking-independent way to make cross-border payments.

However, he sees its growing adoption, particularly those backed by the US dollar, as a threat to the euro’s role as a global reference currency.  

Giorgetti warns that the US’ growing stablecoin policy could pose a more significant threat to European economic sovereignty than trade tariffs introduced under President Donald Trump.

“The general focus these days is on the impact of trade tariffs. However, even more dangerous is the new US policy on cryptocurrencies and in particular that on dollar-denominated stablecoins,” Giorgetti said.

He urged EU leaders to expedite plans for the digital euro. It is a central bank digital currency (CBDC) designed to offer Europeans a homegrown alternative to dollar-based crypto payment tools.

“Stablecoins give savers the opportunity to invest in risk-free assets and a widely accepted means of payment without needing a US bank account. Its appeal for people of the Eurozone should not be underestimated,” Giorgetti warned.

Under new guidance from the US SEC (Securities and Exchange Commission), some stablecoins will be exempt from securities regulation, provided they meet strict standards.

In the same tone, traditional finance (TradFi) is moving swiftly to address the dollar dominance of stablecoins. Through its Onyx platform, JPMorgan Chase has added British pound (GBP) accounts to its Kinexys blockchain-based payments network.

The move addresses a glaring shortfall in the $230 billion stablecoin market, where over 95% of tokens are USD-denominated.

By expanding Kinexys to include GBP (following recent euro integrations), JPMorgan hopes to position itself as a key infrastructure provider for stablecoin-like settlements in other currencies.

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