Stablecoins to control 15% of US Treasury market? Experts say…

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Stablecoins could top US Treasury bond market and the growth could accelerate when the US passes a stablecoin bill in 2025.

US Treasury bills have become the most preferable back-up asset for most stablecoins issuers. Given their safety and liquid nature, issuers like Tether and Circle have become key players in the market to enable 1:1 backing for every stablecoin token issued.

However, Leon noted that the digital economy was growing at 3X, and a likely US stablecoin framework would accelerate the segment. ‘Stablecoin usage is growing at an exponential rate, meaning going from $170B to $1T will happen faster than from $0 to $170B. At $1T, stablecoin purchases of treasury bills would dwarf the 10 largest money market funds, and would put them in the top 3 holders .’Leon’s sentiments. Lutnick praised Tether for helping pay US debt by opting for US Treasury bills as a backup.

 

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