The demand for stablecoins may drive the US bond market to soar, experts predict far-reaching impacts.

OnChainDetective · 2025-06-27T04:16:25+00:00

At a recent conference held in Boston, stablecoins were considered to significantly boost the demand for U.S. Treasury bills. Attending investors predicted that stablecoins would absorb a large supply of U.S. debt, with approximately 80% of stablecoin investments currently in U.S. Treasury bonds. Although its market is still relatively small, it is rising rapidly and may outpace the growth of U.S. debt supply.

OnChainDetective

2025-06-27 04:16:25

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On June 27, at a money market fund conference held in Boston this week, the potential for stablecoins to drive a surge in short-term U.S. Treasury demand has become a hot topic. Attending investors expect that stablecoins will absorb a significant amount of Treasury supply later this year. Stablecoins are typically pegged to highly liquid assets like the U.S. dollar, and to maintain a 1:1 value peg, their issuers need to hold a large 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 in the U.S. 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 U.S. Treasury market, the growth rate of stablecoins is rapid and is likely to surpass the growth of U.S. Treasury supply.

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