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.