TREE NEWS reports: Stablecoin issuers’ purchases of short-term US debt have partly offset China’s retreat from the Treasury market. The authors find issuers favor short-term securities, while China’s decline is concentrated in longer-dated debt. They add that additional stablecoin demand depends on who buys the tokens.
Stablecoin Treasury Demand Partly Offsets China’s Retreat, SF Fed Study Finds
This framing matters because it casts stablecoin growth as a structural force in the world's deepest bond market, not just a crypto story. The nuance is that the offset is partial and concentrated at the short end, so it does little to absorb the long-dated supply China has been shedding. The authors' own caveat — that further demand hinges on who ultimately holds the tokens — is the real open question: retail, institutions and offshore users imply very different Treasury footprints.
Generated by AI for reference only.
Share on WeChat
Open WeChat → Scan → then tap "…" to send to a chat or Moments.
Tap "…" in the top-right corner to send to a chat or share to Moments.