Standard Chartered has launched spot trading for Bitcoin (BTC) and Ethereum (ETH) through its institutional crypto platform, expanding its presence in digital assets just as U.S. regulatory and investor attention turns sharply toward stablecoins.
The launch follows a series of high-level meetings across Washington, New York, and Boston, where Geoffrey Kendrick, the bank’s Head of Digital Assets Research, spent the week of July 7 to July 11 engaging with crypto-native firms, Bitcoin miners, funds, and policymakers.
According to Kendrick, nearly 90% of the discussions centered on stablecoins, despite Bitcoin hitting new record highs.
Regulatory tailwinds
Interest in stablecoins has surged as the GENIUS Act, a U.S. bill that aims to establish clear rules for fiat-backed digital assets, nears passage.
Kendrick said the legislation could become law as early as this week, setting the stage for rapid expansion of the U.S. stablecoin market and unlocking broader adoption across financial institutions and public-sector entities.
Kendrick noted that clients now project a stablecoin market size of $750 billion by the end of 2026, up from approximately $250 billion as of July 15.
With regulatory clarity, stablecoin issuance is expected to broaden significantly, not only through major financial players but potentially also regional banks and local governments exploring tokenized cash instruments.
Beyond adoption, discussions also touched on macroeconomic implications: possible shifts in the U.S. Treasury curve, long-term effects on dollar liquidity, U.S. payment system reform, and stablecoin-driven financial stability risks in emerging markets.
Stablecoin infrastructure
Standard Chartered’s report suggests that the broader stablecoin sector may be evolving faster than previously anticipated.
Kendrick highlighted that the Digital Asset Market Clarity Act, a separate legislative effort, could pass by late September or early October, potentially accelerating the tokenization of real-world assets (RWAs) and the integration of DeFi rails.
On-chain data shows consistent growth in stablecoin balances across all wallet sizes, including centralized exchanges, DeFi platforms, and mid-sized retail wallets, indicating broadening use cases and growing global demand.
Kendrick’s findings and Standard Chartered’s trading desk launch reflect a pivotal shift in institutional crypto strategy. While Bitcoin’s role as a store of value remains intact, the infrastructure and policy agenda now appear firmly focused on stablecoins as the backbone of programmable money.
Mentioned in this article
Credit: Source link
