Treasury Secretary Besant: In the coming years, stablecoins will drive $2 trillion in demand for government bonds.

Recently, U.S. Treasury Secretary Scott Bessent stated at a hearing that the growth of stablecoins in the coming years could create a demand for $2 trillion in government debt, further solidifying the dollar's key position in the digital asset industry.

At the hearing of the House Financial Services Committee, Bessent emphasized the financial relevance of digital assets to the overall economy. He pointed out that the United States must take a leadership role in establishing global cryptocurrency standards to guide industry innovation and allow the country to benefit from it. He also noted that the integration of stablecoins and blockchain-based financial products with the U.S. Treasury market is a vivid example of how national economic interests can be supported.

Currently, stablecoin issuers are heavily holding U.S. Treasury bonds. For example, as of the end of March, the largest stablecoin issuer Tether (USDT) had nearly $120 billion in short-term Treasury bonds in its reserves. The issuing company of USDC, Circle, also reported that it holds more than $22 billion in Treasury bonds.

Therefore, with the increase in the circulation and global demand for stablecoins, this emerging demand may bring new resilience and liquidity to the treasury market, especially in the context of concerns about foreign demand for U.S. debt.

And it is no coincidence that Congress is also considering some new legislation aimed at better regulating the issuance of stablecoins. These proposals require stablecoin issuers to fully backing their tokens with high-quality liquid assets, such as short-term Treasuries. However, due to bipartisan differences, the progress of these bills may be blocked, and some lawmakers have even withdrawn their support for the bill, citing the need for stronger investor protection measures.

If these bills can pass smoothly, they may bring financial investments in the stablecoin sector into a more systematic framework, further enhancing people's trust in stablecoins, while also making the US dollar more stable in the digital market.

What do you think about this trend? Do you believe that the growth of stablecoins will really drive demand for government bonds? Leave your opinions and thoughts in the comments!

#稳定币 # government bonds #digital assets