StanChart sees total crypto market cap climbing 5x to $10 trillion by 2026-end

Standard Chartered said the recent Republican win in the US elections could serve as a major catalyst for digital assets, potentially driving their combined market cap from $2.5 trillion to $10 trillion by the end of 2026.

The bank’s latest report outlines how anticipated regulatory shifts under the new administration may pave the way for mainstream adoption of digital assets as policy changes and regulatory rollbacks foster a more favorable landscape.

StanChart’s head of global digital assets, Geoffrey Kendrick, identified several key factors that could influence this growth trajectory.

Repealing stifling rules

Standard Chartered anticipates that the administration’s early moves could include repealing SEC guidance known as SAB 121. This guidance has required crypto custodians to list digital assets as balance sheet liabilities, limiting their ability to offer custodial services.

Kendrick argued that eliminating SAB 121 could open doors for U.S. banks and institutional investors, allowing them to engage more freely in the digital asset market.

Stablecoins, which have emerged as an increasingly important part of the digital asset ecosystem, may also see significant benefits. The report highlighted recent legislative efforts to establish guardrails around stablecoin issuance, noting that a Republican-led administration could push these initiatives forward.

Standard Chartered sees this as a critical step for legitimizing the use of stablecoins in traditional finance applications, such as cross-border transactions and USD savings, potentially growing the stablecoin market cap to $1 trillion by 2026.

Bitcoin’s $200,000 trajectory

Bitcoin (BTC) is expected to remain a central asset in the digital space, with its price expected to rise to around $200,000 by 2025, driven by a combination of regulatory clarity and continued institutional inflows.

Since the approval of the US spot Bitcoin ETFs earlier this year, net inflows have reached approximately 400,000 BTC, or…