- Experts predict that the capitalization of stablecoins could grow to $750 billion by the end of 2026.
- In the U.S., key cryptocurrency regulation proposals are under consideration, while major banks are increasingly exploring stablecoin solutions under pressure from fintech rivals.
Clients of the American division of Standard Chartered Bank are showing more interest in stablecoins than in Bitcoin. This was stated by Jeffrey Kendrick, Head of Digital Asset Research at the bank, according to The Block.
According to the bank, around 90% of recent client discussions were focused on stablecoins. Last week, meetings were held in Washington, D.C., New York, and Boston with clients and regulators.
Participants discussed the potential economic impact of stablecoins, anticipating growth in the market to $750 billion. As of now, the segment is valued at about $263 billion, according to CoinGecko.
Kendrick believes the $750 billion projection could be reached by the end of 2026. At that point, stablecoins may begin to influence traditional financial markets and monetary policy. In particular, a larger issuance of U.S. Treasury bills may be required to back stablecoins, which could alter the structure of national debt and affect the global demand for the U.S. dollar, he emphasized.
Regulatory Momentum Builds
The discussions coincided with the U.S. government's active review of legislation to regulate the industry—most notably the GENIUS Act, focused on stablecoins.
On July 15, the U.S. House of Representatives rejected three cryptocurrency-related bills. However, following news of President Donald Trump's Oval Office meeting with House members, a new vote schedule was proposed. Consideration of the bills is now set to begin on July 16.
According to Kendrick, once legislation like the GENIUS Act is passed in developed countries, stablecoins will likely enter widespread use for payments. Corporations will benefit from faster and cheaper transactions, while banks and municipalities could begin issuing their own digital assets.
He also noted that in developing countries, consumers often purchase stablecoins to save in dollars—offering protection from the devaluation of local currencies.
However, Kendrick warned that a large outflow of funds via stablecoins could create challenges for some economies, making it more difficult to manage exchange rates and preserve banking system stability.
Tokenization & the CLARITY Act
Kendrick also discussed the CLARITY Act, which he believes could serve as a regulatory blueprint for digital assets and commodities. One of its key impacts, he said, would be on the RWA (Real World Asset) market.
The legislation aims to set a framework for the tokenization of assets ranging from real estate to stocks, which would expand the use of DeFi protocols like Aave, he added.
Fintech Pressure and JPMorgan's Move
JPMorgan, the largest bank in the U.S., is currently exploring publicly traded, dollar-pegged stablecoins, according to CNBC. Despite previous skepticism, CEO Jamie Dimon acknowledged the shift in view:
“I don’t understand why they are needed in place of normal payments. But we are obliged to investigate it.”
Dimon explained that the move comes amid increased competition from fintech firms:
“They are smart, they want to build bank accounts and payment systems. We can’t miss that.”
JPMorgan is currently testing its JPMD stablecoin on the Base blockchain, a network supported by U.S.-based cryptocurrency exchange Coinbase. Designed to facilitate settlements among institutional clients, the coin may become a key piece in JPMorgan’s emerging blockchain infrastructure.
