Jin10 data reported on June 27 that, according to foreign media, at a money market fund conference held in Boston this week, stablecoins may drive a surge in demand for short-term U.S. Treasuries, which has become a hot topic. Attending investors expect stablecoins to absorb a large amount of Treasury supply later this year. Stablecoins are typically pegged to high liquidity assets such as the U.S. dollar, and to maintain a 1:1 value peg, their issuers need to hold a substantial amount of highly liquid safe reserves, which often means purchasing U.S. Treasuries. Yie-Hsin Hung, CEO of State Street Global Advisors, stated that stablecoins are attracting significant demand for the Treasury market. Currently, about 80% of the stablecoin market is invested in U.S. Treasury bills or repurchase agreements, with a scale of approximately $200 billion. Although it accounts for less than 2% of the entire Treasury market, the growth rate of stablecoins is rapid and is likely to surpass the growth of Treasury supply.
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State Street Global: Stablecoins will bring significant incremental demand for US Treasury bonds.
Jin10 data reported on June 27 that, according to foreign media, at a money market fund conference held in Boston this week, stablecoins may drive a surge in demand for short-term U.S. Treasuries, which has become a hot topic. Attending investors expect stablecoins to absorb a large amount of Treasury supply later this year. Stablecoins are typically pegged to high liquidity assets such as the U.S. dollar, and to maintain a 1:1 value peg, their issuers need to hold a substantial amount of highly liquid safe reserves, which often means purchasing U.S. Treasuries. Yie-Hsin Hung, CEO of State Street Global Advisors, stated that stablecoins are attracting significant demand for the Treasury market. Currently, about 80% of the stablecoin market is invested in U.S. Treasury bills or repurchase agreements, with a scale of approximately $200 billion. Although it accounts for less than 2% of the entire Treasury market, the growth rate of stablecoins is rapid and is likely to surpass the growth of Treasury supply.