Stablecoins are increasing demand for U.S. Treasuries, with $120 billion in collateral invested.
Blockchain initiatives, like JPMorgan’s Onyx Platform, are revolutionizing Treasury operations and post-trade processes.
Most central banks are exploring CBDCs to address emerging challenges in the digital asset landscape.
Digital assets, particularly stablecoins and blockchain projects, are reshaping the financial landscape. A report from the U.S. Department of Treasury shows that digital currencies are driving demand for U.S. Treasuries as investors and institutions explore blockchain’s potential to enhance the efficiency of financial transactions.
Stablecoins Increase Treasury Demand
Stablecoins, digital currencies pegged to fiat assets, play a crucial role in boosting Treasury demand. An estimated $120 billion in stablecoin collateral is invested in Treasuries. Tether, the largest stablecoin by market capitalization, allocates 68.3% of its $118.4 billion reserves to Treasury bills.
Other major stablecoins, such as USDC, also boost this demand. Stablecoins act as collateral in decentralized finance (DeFi) markets and provide liquidity in digital tran…
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