Tech News
LAST UPDATE: June 26, 2025
US Treasuries face stablecoin-driven demand surge as supply looms
Issuers of stablecoins are holding around $200 billion in Treasuries and repos, creating a demand surge for government securities as the crypto sector grows—possibly pushing Treasury issuance to $1 trillion by year’s end .
Insight
Emerging crypto capital is becoming a major force in traditional finance. While stablecoin-linked demand bolsters Treasury liquidity, it introduces novel systemic vulnerabilities that warrant regulatory scrutiny.
US Treasuries face stablecoin-driven demand surge as supply looms
Issuers of stablecoins now hold about $200 billion in U.S. Treasury bills and repos—around 2% of the market. As stablecoin adoption continues, additional Treasury demand could reach a projected $1 trillion by year’s end. This reflects a growing intertwining of crypto and traditional finance (reuters.com).
Insight
Stablecoins are emerging as significant Treasury buyers, bolstering demand while introducing new systemic risks. Regulators must address this growth as digital assets increasingly meld with government debt markets.
European Commission to allow stablecoin interchangeability
The European Commission plans to treat non‑EU stablecoins as equivalent to EU‑approved ones under new rules, despite warnings from the ECB that this could destabilize traditional banks during crises. Oversight will remain at the national level .
Insight
This marks a pro-innovation stance that prioritizes crypto growth over centralized risk control. It deepens the divergence between the Commission and the ECB, potentially creating a fragmented EU financial ecosystem.
