7 months ago
Standard Chartered said the caller Republican triumph successful the US elections could service arsenic a large catalyst for integer assets, perchance driving their combined marketplace headdress from $2.5 trillion to $10 trillion by the extremity of 2026.
The bank’s latest study outlines however anticipated regulatory shifts nether the caller medication whitethorn pave the mode for mainstream adoption of integer assets arsenic argumentation changes and regulatory rollbacks foster a much favorable landscape.
StanChart’s caput of planetary integer assets, Geoffrey Kendrick, identified respective cardinal factors that could power this maturation trajectory.
Repealing stifling rules
Standard Chartered anticipates that the administration’s aboriginal moves could see repealing SEC guidance known arsenic SAB 121. This guidance has required crypto custodians to database integer assets arsenic equilibrium expanse liabilities, limiting their quality to connection custodial services.
Kendrick argued that eliminating SAB 121 could unfastened doors for U.S. banks and organization investors, allowing them to prosecute much freely successful the integer plus market.
Stablecoins, which person emerged arsenic an progressively important portion of the integer plus ecosystem, whitethorn besides spot important benefits. The study highlighted caller legislative efforts to found guardrails astir stablecoin issuance, noting that a Republican-led medication could propulsion these initiatives forward.
Standard Chartered sees this arsenic a captious measurement for legitimizing the usage of stablecoins successful accepted concern applications, specified arsenic cross-border transactions and USD savings, perchance increasing the stablecoin marketplace headdress to $1 trillion by 2026.
Bitcoin’s $200,000 trajectory
Bitcoin (BTC) is expected to stay a cardinal plus successful the integer space, with its terms expected to emergence to astir $200,000 by 2025, driven by a operation of regulatory clarity and continued organization inflows.
Since the support of the US spot Bitcoin ETFs earlier this year, nett inflows person reached astir 400,000 BTC, oregon astir $25 billion.
Standard Chartered believes these inflows could accelerate further arsenic the ETF marketplace matures, perchance optimizing concern portfolios with a much balanced allocation betwixt Bitcoin and gold, according to the lender.
Beyond Bitcoin, the study projected that astute declaration platforms and furniture 2 blockchains, which facilitate decentralized applications and DeFi protocols, volition summation worth astatine a faster complaint than Bitcoin implicit the coming years.
The assemblage presently represents astir 25% of the full integer assets marketplace headdress and has the imaginable to turn to $2.5 trillion by 2025 arsenic these platforms payment from an expanding array of end-use applications.
According to the lender, Ethereum (ETH) and Solana (SOL) are peculiarly well-positioned to seizure this growth, with Ethereum perchance reaching $10,000 by the aforesaid timeline.
Extended ‘Crypto Summer’
The study further outlined maturation imaginable successful emerging sectors specified arsenic DeFi and decentralized carnal infrastructure networks (DePin), predicting that DeFi could summation its stock of the marketplace to astir $700 cardinal by 2026 arsenic regulatory barriers are removed.
Additionally, categories similar gaming, tokenization, and consumer-focused decentralized societal networks are projected to expand, contributing to an “other” class that could scope a marketplace headdress of $1.5 trillion by 2026.
Overall, Standard Chartered’s outlook highlights the imaginable for a wide-ranging “crypto summer” period, marked by some accrued valuations for existing assets and the emergence of caller sub-sectors.
The slope attributes this anticipated maturation to a operation of favorable argumentation changes, rising organization interest, and the maturation of assorted blockchain usage cases.
If the predicted regulatory situation materializes, Standard Chartered sees integer assets positioned for a important emergence successful mainstream adoption and marketplace capitalization implicit the adjacent 2 years.
The station StanChart sees full crypto marketplace headdress climbing 5x to $10 trillion by 2026-end appeared archetypal connected CryptoSlate.
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