Standard Chartered predicts that the recent Republican win in the US elections could drive the combined market cap of digital assets from $2.5 trillion to $10 trillion by the end of 2026. The bank's report suggests that anticipated regulatory shifts under the new administration could lead to increased adoption of digital assets. Repealing a SEC guidance called SAB 121, which limits the ability of crypto custodians to offer services, could open doors for US banks and institutional investors to enter the digital asset market. Stablecoins may also benefit from a Republican-led administration, as legislative efforts to establish regulations around stablecoin issuance could be pushed forward to legitimize their use in traditional finance applications. Bitcoin is expected to remain a central asset, with its price potentially reaching around $200,000 by 2025 due to regulatory clarity and institutional inflows. Smart contract platforms and layer 2 blockchains are predicted to grow at a faster rate than Bitcoin, with Ethereum and Solana well-positioned to capture this growth. Emerging sectors like DeFi, gaming, tokenization, and decentralized social networks are projected to expand as well. Overall, Standard Chartered believes that digital assets are poised for mainstream adoption and significant market capitalization growth in the next few years.



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