The U.S. Treasury is making a big move this week! They are preparing to auction a full $100 billion in four-week Treasury bills, which is a record-breaking number. Just to note, the last time it was only $95 billion, and this time it has increased by $5 billion, really getting more aggressive.
This is actually quite interesting. Those stablecoins on the market are getting more and more popular, like USDT and USDC, everyone is using them. President Trump previously introduced the 'Genius Act', which stipulated that these stablecoin issuers must use safe assets like government bonds as backing. And guess what happened? These companies had to rush to buy government bonds in order to issue coins, causing the demand for Treasury bills to soar.
Experts from the Fiscal Loan Advisory Committee have also said that stablecoins have now become a new major force in buying government bonds. Just think about it, previously it was mainly banks and funds that were buying, but now even digital currency issuers have to rush to buy them. No wonder the Treasury dares to issue more and more, after all, someone is there to take it up!
But to be honest, such a large-scale bond issuance does make people a bit worried. Although there is this new buyer in the form of stablecoins supporting the market, who knows what will happen in the future? If one day something goes wrong in the digital currency market, and these stablecoin issuers suddenly stop buying government bonds, then the Treasury will have a headache. However, it seems that for now, this transaction is quite stable, one is willing to sell and the other is willing to buy, and everyone is happy.