State Street Global Advisors: Stablecoins will bring huge incremental demand for U.S. Treasuries, which may exceed the growth of U.S. Treasury supply

Planet Daily News: According to foreign media reports, at a money market fund conference held in Boston this week, the potential of stablecoins to drive short-term U.S. Treasury demand became a hot topic. Investors at the conference expect that stablecoins will absorb a large amount of U.S. debt supply later this year. Stablecoins are typically pegged to high-liquidity assets like the U.S. dollar, and to maintain a 1:1 value peg, their issuers need to hold large amounts of highly liquid safe reserves, which usually means purchasing U.S. Treasuries. State Street Global Investments CEO Yie-Hsin Hung stated that stablecoins are attracting significant demand for the U.S. Treasury market. Currently, about 80% of the stablecoin market is invested in U.S. Treasury bills or repurchase agreements, with a scale of approximately $200 billion. Although this represents less than 2% of the entire U.S. debt market, stablecoins are growing rapidly and are likely to exceed the growth of U.S. debt supply. (Jin Shi)