according to materials from the site - By CoinoMedia
Bank of America (BoA) has published a bold forecast: the demand for U.S. Treasury bonds from stablecoins could increase by as much as $75 billion. As stablecoins become the foundation of digital finance and decentralized ecosystems, issuers are increasingly turning to safe and liquid assets like Treasury bonds to back their tokens.
This potential influx of $25–75 billion will mark a deepening connection between the crypto sector and traditional financial markets. Stablecoins like USDT and USDC, pegged to the U.S. dollar, require solid reserves to maintain trust and value stability, and Treasury bonds are the best choice.
According to BoA, the rise in stablecoin usage in areas such as payments, remittances, and decentralized finance (DeFi) will require issuers to increase sovereign debt to sustain demand. As stablecoins grow globally, the assets backing them must also increase, and Treasury bills provide security, yield, and liquidity.
Circle, the issuer of USDC, and Tether have already invested billions of dollars in Treasury bonds. Given the increased scrutiny from regulators and the rise in global usage, BoA suggests that this figure could significantly increase.
This trend may impact overall market dynamics. An increase in the volume of stablecoins in Treasury bonds could enhance liquidity in U.S. debt markets and elevate the role of cryptocurrencies in global finance.
BoA's forecast illustrates a broader picture: cryptocurrency is no longer on the sidelines. It plays an increasingly prominent role in mainstream financial systems, changing the ways capital moves and where it is stored.
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