Are stablecoins really going to become the buyers of U.S. Treasury bonds? As we enter May, the U.S. is placing considerable importance on stablecoins. With the advancement of relevant legislation and support from high-level officials, the market value of this financial 'species' has surged from $20 billion to nearly $250 billion over the past five years. Standard Chartered Bank predicts that by the end of 2028, the issuance will reach $2 trillion, creating a demand for $1.6 trillion in short-term Treasury purchases, which could absorb the new short-term government bonds issued during Trump's remaining term.
However, this strategy also carries risks. Bank of America Securities has warned that the rise of stablecoins may lead to a diversion of $6.6 trillion in deposits from traditional American banks, putting pressure on bank stock valuations. The U.S. aims to rely on stablecoins to solidify the U.S. dollar's position and absorb government bonds, but whether this will ultimately be a blessing or a curse remains uncertain.