Analysis: Stablecoins’ US Treasury holdings will soon rise to 15%, making them one of the top three holders
On August 22nd, Bitwise Senior Investment Strategist Juan Leon stated in a post on X that "according to a report from Bloomberg, stablecoins currently hold about 1% of US Treasury bonds, but this proportion could soon increase to 15%, making them one of the top three holders. Without regulation, the market value of stablecoins has risen from zero to nearly $170 billion in a few years. Now, a stablecoin bill has received bipartisan support in Congress, and Federal Reserve officials have recognized stablecoins as a new tool that can increase the influence of the US dollar globally and support the US Treasury bond market. With stablecoin regulation set to take effect in Europe in 2025 and the US hoping to catch up, stablecoins will increasingly be embedded in the pipelines of the digital economy. As AI agents become more common, stablecoins will become the preferred mechanism for digital commerce. The digital economy already accounts for 15% of the world economy and is growing at 2-3 times the speed. The use of stablecoins is growing exponentially, which means that the speed from $170 billion to $1 trillion will be faster than the speed from zero to $170 billion. A $1 trillion purchase of stablecoin government bonds will make the top 10 currency market funds pale in comparison and put them among the top three holders (over $800 billion)."
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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