Stablecoin Issuers Could Boost US Treasury Bill Demand by $1 Trillion by 2028

Standard Chartered's report forecasts a potential increase in demand for US Treasury bills, driven by stablecoin issuers, which could reach up to $1 trillion by 2028. According to NS3.AI, this demand surge is expected to come mainly from emerging markets. As a result, the US Treasury might need to increase T-bill issuance and consider suspending 30-year bond auctions for the next three years. This shift could lead to a flattening of the Treasury yield curve and significantly impact long-term debt market dynamics.