[U.S. Treasury Report States Blockchain Technology Will Enhance Financial Market Infrastructure] According to Mars Finance, the U.S. Treasury's report for the fourth quarter of 2024 states that blockchain technology is expected to create 'new financial market infrastructure', improving operational and economic efficiency.
The report notes that to realize these benefits, the legal and regulatory environment needs to evolve alongside the progress of asset tokenization. On October 29, the U.S. Treasury Borrowing Advisory Committee discussed the benefits of stablecoin adoption and treasury bond tokenization.
The report states that tokenization can improve the liquidity of treasury bond trading by reducing operational and settlement friction. Distributed ledger technology (DLT) and smart contracts are particularly beneficial for enhancing transparency and real-time trading insights.
The committee noted that stablecoins appear to have increased demand for short-term U.S. treasury bonds (T-Bills). The growth of digital assets primarily through the use and adoption of stablecoins has created marginal incremental demand for short-term treasury bonds.
A committee member suggested that the U.S. create a licensed blockchain to tokenize short-term treasury bonds, emphasizing that it should be led by a trusted central authority and receive broad support from the private sector.
Stablecoins, as tokens pegged to the U.S. dollar or other fiat currencies, are becoming the core infrastructure for trading and payments. In 2024, the total market capitalization of stablecoins reached a new high, approaching $18 billion. Tether (USDT) dominates the stablecoin market with a market capitalization of $120 billion. Circle's USD Coin (USDC) ranks second with a market capitalization of about $35 billion.
At the same time, tokenized real-world assets (RWA) represent a global market opportunity of $30 trillion.
