U.S. Treasury Secretary: Digital assets may bring $2 trillion in national debt demand

Source: Blockchain Knight

U.S. Treasury Secretary Scott Bessent stated that in the coming years, demand for government bonds from the digital asset sector may surge, with a potential scale reaching $2 trillion.

Bessent made the above remarks at a hearing held by the House Financial Services Committee on the global financial system, where he emphasized the increasing financial importance of digital assets to the broader economy.

Bessent stated that the United States must take a leadership role in setting global standards for the crypto asset market, noting that the U.S. has the opportunity to benefit from guiding innovation.

He pointed out that the integration of stablecoins and other blockchain-based financial products with the US dollar and the US Treasury market is deepening, indicating that digital assets can support the national financial interests of the United States.

The Growth of Stablecoins Drives Demand for Government Bonds

Most of the anticipated demand comes from stablecoins. Currently, stablecoins heavily rely on U.S. short-term Treasury bonds to maintain their reserves.

As of the end of March, Tether, the world’s largest stablecoin issuer, held nearly $120 billion in short-term U.S. Treasury bonds as reserves for USDT. Meanwhile, as of February 2025, Circle, the issuer of USDC, reported holding over $22 billion in U.S. Treasury bonds.

With the increase in the circulation of stablecoins and the rise in global demand, the demand for low-risk assets such as government bonds as corresponding collateral has also grown.

The connection between digital assets and the U.S. debt market is becoming increasingly tight, as private stablecoin issuers are increasingly becoming stable institutional buyers of U.S. Treasury bonds.

This emerging demand may add new resilience and liquidity to the U.S. Treasury market, especially against the backdrop of widespread concerns about overseas investors’ willingness to purchase U.S. Treasuries.

U.S. Congress Weighs New Legislation

The proposed legislation aims to clarify the role of stablecoin issuers within the ecosystem of the U.S. Treasury market, further reinforcing expectations of potential demand growth.

The STABLE Act of 2025 and the GENIUS Act of 2025, which are currently before Congress, require stablecoin issuers to be fully collateralized by high-quality liquid assets, including short-term Treasury bonds, to support their stablecoins.

However, due to the political differences between the Democratic and Republican parties, these bills may face delays. Recently, nine lawmakers withdrew their support for the bill, citing that it lacks sufficient rules to protect investors.

If these bills are passed, they will effectively require the entire stablecoin industry to invest in government bonds, thereby integrating the digital dollar more deeply into the U.S. financial infrastructure.

Supporters of these bills believe that such regulations will enhance people’s trust in stablecoins while consolidating the dominance of the US dollar in the digital market.