The National Innovation Innovation Law for the United States (genius) is expected to be approved in the US. In the coming months, and that could trigger a leap of almost 10 times in Stablecoin Supply, said Investment Bank Standard Chartered in a research report on Tuesday.
The US legislation “would further legitimize the Stablecoin industry,” wrote the analysts led by Geoff Kendrick, adding that “we estimate that this would cause Stablcoin’s total supply to increase from $ 230 billion to $ 2TN for the end of the year 2028”.
The stable are cryptocurrencies whose value is linked 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 said the proposed legislation was authorized by the Senate Banking Committee in March and it seems that Congress approved Congress and then signed President Donald Trump in the middle of the year.
An increase in the supply of Stablecoin has implications for the purchase of the United States Treasury and the hegemony in US dollars, according to the report.
The estimated increase of the bank in the stable issuance would require the additional purchase of $ 1.6 billion of treasure invoices in the next four years.
“This would be enough to absorb the entire T-Bill planned broadcast for the rest of Trump’s second mandate,” the authors wrote.
The increase in the demand for stablecoin reserves called in dollars would result in an additional demand for US dollars, said the bank, and this should support hegemony in dollars.
Standard Chartered said that the industry is moving to the model used by the USDC emitter circle, the second largest Stablecoin issuer, which has 88% of its reservations in treasure invoices with an average duration of 12 days.
Tether, the largest Stablecoin issuer, has 66% of its USDT reservations in treasure invoices, the report said.
Read more: XRP could reach $ 12.5 before the end of President Trump’s term: Standard Chartered
