The National Innovation Guidance and Establishment Law for American Stablescoins (Genius) is expected to be adopted in the United States in the coming months, which could start a jum of almost 10 times in the Stablecoin offer, a research report from the investment bank in a research report on Tuesday.
American legislation “would legitimize the stable industry more,” the analysts led by Geoff Kendrick wrote, adding that “we believe that this would lead to an increase in the stable supply of $ 230 billion today at 2 TN at the end of 2028”.
Stablecoins are cryptocurrencies whose value is linked to another asset, such as US dollar or gold. They play a major role in the cryptocurrency markets and are also used to transfer money internationally.
The bank noted that the proposed legislation had been brought by the Senate Banking Committee in March and seems to be adopted by the Congress, then signed by President Donald Trump around the middle of the year.
An increase in the stablecoin supply has implications for American cash purchases and the hegemony of the US dollar, according to the report.
The estimated increase in the Stablecoin issue bank would require the additional purchase of $ 1.6 billion in cash bills over the next four years.
“It would be enough to absorb the whole new program of the T holbermeric on the rest of Trump’s second term,” wrote the authors.
The increase in demand for stablecoin reserves called dollars would result in an additional US dollars demand, the bank said, which should support hegemony in dollars.
Standard Charterd said that it expects the industry to move to the model used by USDC Transfer Circle, the second stablecoin transmitter, which holds 88% of its reserves in cash bills with an average duration of 12 days.
TETHER, the largest stable transmitter, holds 66% of its USDT reserves in cash bills, noted the report.
Find out more: XRP could reach $ 12.5 before the end of President Trump’s mandate: Standard Charterd
