Deep Trend TechFlow News, on September 18, Coindesk reported that Alexander Deschatres, head of sponsor coverage in Asia at Standard Chartered Bank, said that the supply of stablecoins of US$170 billion may support the demand for tokenization of government bonds. Deschatres said during the Token2049 conference in Singapore: “The $170 billion stablecoin supply represents a potential liquidity that can be channeled into money market tokens and Treasury tokens, potentially buffering the negative impact of the Federal Reserve’s rate cuts.” He emphasized that even in an interest rate cutting environment, the yield on government bonds still has significant advantages over passively holding stablecoins.
Data shows that since early January 2024, the market value of treasury tokenization products has soared from $100 million to more than $2 billion, mainly driven by demand from US investors. Among them, BlackRock's US dollar institutional digital liquidity fund has attracted more than $500 million in inflows. The upcoming interest rate cut cycle of the Federal Reserve may affect the demand for treasury tokenization. However, the existence of the stablecoin market may offset this impact to a certain extent, providing investors with another asset allocation option.
