Stablecoin Issuers Set to Transform U.S. Treasury …

From Financial Modeling Prep: 2025-04-16 02:11:00

Stablecoin issuers are projected to dominate U.S. Treasury markets, potentially absorbing $1.6 trillion in T-bills by 2028. Current stablecoin supply is $230 billion, expected to surge under the GENIUS Act. Analysts anticipate stablecoin issuers becoming the second-largest T-bill buyers, boosting long-term demand for U.S. dollars.

Regulatory clarity from the GENIUS Act may lead stablecoin issuers to hold more U.S. Treasury bills, with an estimated $400 billion in new T-bill purchases annually. To comply, issuers may adopt strategies like Circle, holding reserves in T-bills for 93 days or less. Shorter-duration holdings could be favored around FOMC meetings to manage risk.

Passage of the GENIUS Act could legitimize the stablecoin industry, reshaping U.S. Treasury holdings. As stablecoins integrate into mainstream finance, their demand for T-bills may impact digital assets and traditional financial instruments. Investors can track market dynamics with real-time data from Financial Modeling Prep’s cryptocurrency API for further insights.



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