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Dow Jones Global: Stablecoins to Bring Huge Incremental Demand for US Treasuries
Summary: According to foreign media reports, stablecoins may drive a surge in short-term demand for US Treasuries, as discussed at a money market fund conference in Boston this week. Investors at the conference anticipate that stablecoins will absorb a significant amount of US debt supply later this year. Stablecoins, typically pegged to high-liquidity assets like the ...
According to foreign media reports, stablecoins may drive a surge in short-term demand for US Treasuries, as discussed at a money market fund conference in Boston this week. Investors at the conference anticipate that stablecoins will absorb a significant amount of US debt supply later this year. Stablecoins, typically pegged to high-liquidity assets like the US dollar to maintain a 1:1 value peg, require issuers to hold large reserves of liquid and safe assets, often leading to the purchase of US Treasuries. Yie-Hsin Hung, CEO of Dow Jones Global Investment Management, stated that stablecoins are attracting significant demand for the US Treasury market. Currently, around 80% of the stablecoin market is invested in US Treasury securities or repurchase agreements, with a total size of approximately $200 billion. While this represents less than 2% of the entire US Treasury market, the rapid growth of stablecoins is likely to surpass the growth of US debt supply.
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Link: Dow Jones Global: Stablecoins to Bring Huge Incremental Demand for US Treasuries [Copy]
