The post Stablecoins Driving Demand for Short-Dated Treasuries, Says US Treasury appeared on BitcoinEthereumNews.com.

In its most recent report examining the implications of digital assets, the US Treasury noted that the “growth in stablecoins has resulted in a modest increase in demand for short-dated Treasuries.” The 132-page report, released for the Treasury Borrowing Advisory Committee, discusses digital assets, focusing on major players like Bitcoin and stablecoins. US Treasury: Stablecoins Boosting Treasury Demand In its latest report on the implications of digital assets, the US Treasury said the “growth in stablecoins has led to a slight increase in short-dated Treasuries demand.” The 132-page report, issued Wednesday for the Borrowing Advisory Committee, contains a small section on digital assets based upon more prominent players such as Bitcoin and stablecoins. As the the authorities said, “Digital assets have proliferated from a low starting point. That growth has come from native cryptocurrencies, such as Bitcoin and Ethereum, as well as stablecoins.” The aggregate market capitalization of digital assets remains relatively low compared with other financial and real assets. This growth does not seem to have impinged on demand for Treasuries. Tether’s Treasury Holdings Revealed Tether, the company behind USDT, has said it puts a significant portion of the cash backing its token into US Treasury. According to CEO Paolo Ardoino, Tether owns more Treasury bills than countries like the UAE, Australia, and Spain. Credit: Bitwise An estimate from the US Treasury puts close to $120 billion of stablecoin collateral invested in US Treasuries. That includes Tether holding almost $81 billion in T-bills. The aggregate market capitalization of all stablecoins, stands at over $177 billion. It observed that “stablecoins play an integral role in intermediating transactions in digital asset markets.” Today, over 80% of all crypto transactions involve a stablecoin as part of the transaction. Going forward, the Department looked ahead to the possibility of continued stablecoin growth and…

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Filed under: News - @ October 31, 2024 1:09 am