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Standard Chartered: Stablecoin Growth Could Unlock $1 Trillion in Treasury Bill Demand by 2028

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Nexo Partners with Bakkt for US Crypto Exchange and Yield Programs

TLDR:

  • Standard Chartered forecasts stablecoin market cap will grow from $304 billion to $2 trillion by 2028.
  • Stablecoin reserve practices could generate between $800 billion and $1 trillion in new T-bill demand.
  • Growth is driven by macroeconomic trends, meaning it persists even if Bitcoin and Ethereum trade sideways.
  • Rising Treasury exposure gives stablecoin issuers growing political leverage against potential regulatory crackdowns.

Standard Chartered has released a forecast that is drawing attention across traditional finance and crypto markets alike. The bank predicts stablecoin market capitalization will climb from $304 billion today to $2 trillion by 2028.

According to the bank, this growth will be driven by macroeconomic trends rather than crypto-native adoption.

As stablecoin issuers continue parking reserves in US Treasury bills, the demand for short-term government debt could rise sharply. The forecast is reshaping how institutions approach the stablecoin conversation.

Standard Chartered Links Stablecoin Growth to Treasury Demand

Standard Chartered’s forecast draws a direct line between stablecoin expansion and US Treasury markets. Stablecoin issuers like Tether and Circle back their tokens by holding reserves in short-term Treasury bills.

This practice already channels hundreds of billions into T-bill markets at current circulation levels. The bank estimates that scaling to $2 trillion could produce $800 billion to $1 trillion in new T-bill demand.

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That level of structural buying is a notable development for sovereign debt markets. Unlike speculative capital flows, this demand is tied directly to stablecoin issuance volume.

It persists regardless of broader crypto market conditions. Financial news account Walter Bloomberg flagged the bank’s estimate, noting the growth is “driven by macroeconomic trends rather than structural issues.”

Crypto outlet Milk Road further contextualized Standard Chartered’s numbers for retail audiences. The outlet noted that stablecoin issuers have “quietly become one of the largest holders of US Treasury bills.”

With $304 billion already in circulation, hundreds of billions in T-bill exposure already exist today. Standard Chartered’s projection simply extends that existing pattern forward.

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The bank’s forecast also carries weight because of its source. Standard Chartered is a globally recognized institution, not a crypto-native research firm.

Its entry into stablecoin market analysis signals growing mainstream financial interest. That shift alone adds credibility to the $2 trillion growth projection.

Standard Chartered’s Outlook Points to Broader Market Consequences

Beyond Treasury demand, Standard Chartered’s forecast touches on political and regulatory dynamics. Milk Road pointed out that stablecoin issuers absorbing nearly a trillion in government debt will “grow their political leverage.”

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Governments find it increasingly difficult to restrict entities buying large volumes of national debt. This creates a natural shield against aggressive regulatory action.

Standard Chartered’s prediction also suggests stablecoins are becoming too systemically important to ignore. That shift could accelerate regulatory clarity in major jurisdictions around the world.

Clearer frameworks would, in turn, support further stablecoin market expansion. The bank’s forecast, therefore, sets up a self-reinforcing growth cycle.

Milk Road also noted that the projected growth happens “even if BTC and ETH trade sideways.” This separates Standard Chartered’s outlook from typical crypto bull-market narratives.

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The bank frames stablecoin growth as a macroeconomic story, not a speculative one. That distinction matters greatly to institutional investors evaluating the sector.

Standard Chartered’s $1 trillion Treasury demand prediction is arriving at a critical time. Deficit spending continues with no clear slowdown, creating persistent need for reliable T-bill buyers.

Stablecoin issuers, under this forecast, step into that role at scale. The bank’s analysis positions stablecoins as a structural pillar of short-term US debt markets going forward.

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3 DeFi Altcoins Explode After BlackRock and Wall Street Deals

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3 DeFi Altcoins Explode After BlackRock and Wall Street Deals

Three major DeFi tokens — Morpho (MORPHO), Uniswap (UNI), and Jupiter (JUP) — rallied sharply over the past week after Wall Street firms Apollo Global Management, BlackRock, and ParaFi Capital struck landmark deals to acquire direct stakes in onchain financial infrastructure.

The moves signal a structural shift, as traditional asset managers move beyond crypto exposure and begin acquiring governance and economic ownership in decentralized trading and lending rails.

Morpho Surges after Apollo Agrees to Acquire 90 Million Tokens

Morpho posted the strongest rally after Apollo Global Management announced a cooperation agreement to acquire up to 90 million MORPHO tokens over four years. The purchase represents roughly 9% of total supply.

The deal gives Apollo governance exposure and positions the firm to support lending markets built on Morpho’s infrastructure. 

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Morpho currently secures about $5.8 billion in total value locked, making it one of the largest onchain lending platforms.

Investors responded quickly. MORPHO is up nearly 30% in a week. 

MORPHO Price Chart. Source: CoinGecko

Uniswap Jumps as BlackRock buys UNI and Integrates Tokenized Fund

Uniswap rallied after BlackRock confirmed it purchased UNI tokens alongside integrating its $2 billion tokenized Treasury fund, BUIDL, onto Uniswap’s institutional trading infrastructure.

The integration allows institutional investors to trade tokenized Treasury exposure using Uniswap’s decentralized exchange rails. 

Meanwhile, BlackRock’s UNI purchase gives the asset manager governance influence over the protocol that now hosts its fund.

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UNI surged sharply late in the week, rallying nearly 20%. 

Uniswap UNI Token Price Chart. Source: CoinGecko

ParaFi Invests $35 Million directly Into JUP

Jupiter also rallied after ParaFi Capital invested $35 million directly into the protocol’s JUP token. 

Unlike typical venture deals, ParaFi purchased tokens at market price with lockups and warrants for future purchases.

The deal marks Jupiter’s first institutional investment and aligns ParaFi with the platform’s expansion into lending, stablecoins, and institutional trading infrastructure.

JUP rose from approximately $0.144 to $0.163 during the week.

Jupiter JUP Token Price Chart. Source: CoinGecko

Together, the deals highlight a broader trend. Instead of simply buying crypto assets, Wall Street firms are acquiring governance stakes in core DeFi protocols.

This transition signals growing institutional confidence in onchain financial rails and helps explain the strong price reactions across lending and trading infrastructure tokens.

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Bitcoin Surges to $69.5K on ETF Inflows, US Macroeconomic Boost

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Cryptocurrencies, Bitcoin Price, Markets, Cryptocurrency Exchange, Bitcoin Futures, Binance, Price Analysis, Futures, Market Analysis, Liquidity, Bitcoin ETF, ETF

Bitcoin (BTC) rallied to a weekly high of $69,500 on Wednesday, surging from lows near $62,400 in less than 24 hours. The rebound aligned with a renewed spot Bitcoin exchange-traded fund (ETF) inflows and firmer macroeconomic sentiment after the recent US policy signals helped steady broader risk markets.

Derivatives data shows that BTC’s open interest is falling and funding rates are staying relatively contained, indicating the move was largely driven by spot demand rather than a buildup of leveraged positioning.

Cryptocurrencies, Bitcoin Price, Markets, Cryptocurrency Exchange, Bitcoin Futures, Binance, Price Analysis, Futures, Market Analysis, Liquidity, Bitcoin ETF, ETF
Bitcoin one-hour chart. Source: Cointelegraph/TradingView

Bitcoin receives a macro boost and a positive ETF flip

US President Donald Trump’s State of the Union address on Tuesday evening framed the first 12-months of his leadership as an “economic turnaround for the ages,” highlighting falling mortgage rates and a 1.7% decline in core inflation over the final three months of 2025.

Markets interpreted the remarks as a sign of reduced near-term policy uncertainty following tariff and Supreme Court volatility, lifting the risk appetite across equities and crypto.

The US spot Bitcoin ETFs recorded $257.7 million in net inflows on Feb. 24, ending five consecutive weeks of redemptions totaling $3.8 billion. Fidelity drew roughly $83 million, and BlackRock’s iShares Bitcoin Trust added close to $79 million.

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Related: Bitcoin daily gains near 5% as analysis eyes bullish ‘rotation’ from gold

Bitcoin futures data clears excess downside risk

As Bitcoin trades above $69,000, futures data shows that its aggregated open interest has stabilized around 235,167 BTC, after previously reaching levels above 240,000 BTC earlier in the week.

The drop in open interest suggests that the excess leveraged positioning has already been flushed out during the recent volatility.

Cryptocurrencies, Bitcoin Price, Markets, Cryptocurrency Exchange, Bitcoin Futures, Binance, Price Analysis, Futures, Market Analysis
Bitcoin one-hour chart, aggregated funding rate, open interest, and volume. Source: Velo.chart

At the same time, aggregated funding rates remain slightly negative at -0.0037%. Negative funding indicates that short positions are still paying longs, signaling that traders are not aggressively chasing upside exposure despite the price rally.

This combination of cooling open interest and negative-to-neutral funding points to a market that has reset leverage rather than overheated. The rally toward $69,000 appears to be occurring without an aggressive buildup of long positioning.

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The cumulative volume delta (CVD) has edged higher, showing that spot buyers are stepping in and are one of the primary drivers of this rally. 

Market analyst BackQuant noted that derivatives activity is still playing a large role, and options data shows that dealers, the firms that sell options and hedge their exposure, are holding what’s known as positive gamma.

When gamma is positive, dealers tend to buy as the price falls and sell as the price rises to stay hedged. That behavior can smooth out volatility and slow sharp breakouts in either direction.

Likewise, trader LP also pointed to BTC’s order book dynamics around the $60,000–$63,000 region, where strong bid pressure previously absorbed selling. Since tapping that zone, the price has expanded roughly 8% to the upside. 

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Cryptocurrencies, Bitcoin Price, Markets, Cryptocurrency Exchange, Bitcoin Futures, Binance, Price Analysis, Futures, Market Analysis
Bitcoin orderbook analysis by LP. Source: X

The trader added that if sell pressure builds again at these levels, it may signal a slowdown in buy-side aggression and trigger another lower reversal.

Related: Anchorage buys STRC as Wall Street shorts mount against Saylor’s Bitcoin proxy