Stablecoins to trigger rise in demand for Treasuries – study
Authors say sector’s growth could take demand from around $300bn today to $2trn by 2030
The increasing use of stablecoins outside the US could result in the demand for Treasuries from the assets’ issuers hitting $2 trillion by the end of the decade, a new paper projects.
The study, published on October 29, is based on simulations of the demand for Treasuries under hypothetical annual growth rates for both dollar circulation outside the US and stablecoin penetration.
Treasuries make up the vast majority of the assets used to back stablecoins, most of which are denominated in dollars
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