Stablecoin Surge Could Boost Demand for US Treasuries

A new analysis by Scott Bessent suggests stablecoins, like USDT and USDC, could drive a substantial increase in demand for US Treasury securities, potentially impacting borrowing costs and global dollar dominance. Bessent forecasts a potential $2 trillion rise in US Treasury demand within the coming years. ^{[1] [2]} This development is significantly impacting traditional financial systems. Bessent highlights that stablecoins are playing an increasingly influential role in these systems, leading to immediate impacts like lowered borrowing costs for the US government and strengthening its global influence. ^[3]