Bank of America expects the stablecoin supply to rise by up to $75 billion in the near term, driven by regulatory clarity from the GENIUS Act. The firm’s analysts are bullish on assets like USDC and USDT following the recent crypto wins on a regulatory level. The BofA analysts also forecast that stablecoin growth could boost demand for short-term U.S. Treasuries.
“Supply of stablecoins will grow a “relatively modest” $25 billion-$75 billion in the near term, driven by product rollouts, infrastructure investment, and competition from tokenized deposits and money market funds,” the bank said in a report last week. At press time, the stablecoin market cap sits at $270 billion, signaling growth to as much as $345 billion by 2028.
Stablecoin Industry in the Spotlight
The GENIUS Act, in essence, backs the stablecoin domain. This act helps in streamlining the role of stablecoins in the current financial structure and regime. Several US institutions and banks, including Bank of America, are preparing to get involved in the stablecoin market by serving or even creating their own. Long-time anti-crypto advocate Jamie Dimon has even begun easing JPMorgan into developing crypto products and investing in Bitcoin, after years of being against it. As a result, the stablecoin industry has been receiving plenty of attention over the last month.
Also Read: How the Clarity, Genius, & Anti-CBDC Acts Will Reshape US Crypto
On the flip side, Bank of America’s stablecoin report also adds that while cross-border use cases are gaining traction, most bank executives do not expect near-term disruption to domestic payments. However, the stablecoin market will indeed provide a popular alternative to storing fiat currency and cash in investment accounts. Furthermore, it opens the door for more customers to access blockchain technology and eventually crypto assets not pegged to the US dollar, such as Bitcoin and Ethereum. Following the Genius and Clarity Acts being passed, the crypto market also boomed, with BTC establishing a new ATH north of $119,000.
