Stablecoin Purchases Surge: U.S. Treasury Market Now in New Hands

Stablecoins are stepping into a more prominent role within the U.S. Treasury market, surpassing even large money market funds as third-largest buyers. This surge, driven by Tether (USDT) and Circle’s (USDC), has significant implications for short-term yields on U.S. Treasury bills. According to the Bank for International Settlements (BIS), stablecoin flows can influence three-month U.S. Treasury yields by up to 2.5 basis points within a 10-day period.