U.S. Treasury Secretary Scott Bethancourt stated on the 12th at a Senate Appropriations Subcommittee hearing that the market size of dollar-pegged stablecoins could reach over $2 trillion. He reiterated the potential of digital assets to strengthen the position of the U.S. dollar in the global financial system.
Mr. Besent pointed out that despite historical moments when the status of the US dollar has been questioned, new factors have allowed the currency to regain its momentum, drawing on his experience as an expert in the hedge fund sector within the foreign exchange field. He stated that the current administration is committed to maintaining and strengthening its status as a reserve currency.
The bill currently under deliberation in Congress includes a provision requiring that dollar-denominated stablecoins be backed by high-quality assets such as U.S. Treasury bonds. Mr. Besant stated, "The legalization of stablecoins backed by U.S. Treasury bonds will create a market for the expanded use of the U.S. dollar through stablecoins globally."
Market forecasts indicate that stablecoins are expected to reach a market capitalization of $2 trillion within a few years (currently at $255 billion). Citigroup had previously released a modest forecast stating that additional purchases of government bonds will exceed $1 trillion by 2030, but Mr. Besant expressed an optimistic outlook, stating that $2 trillion is "a very reasonable figure and it is also possible that it could exceed that significantly."
According to the latest report from ARK Investment, stablecoin issuing companies have already become major purchasers of U.S. Treasury bonds. Tether and Circle together hold approximately $120 billion in U.S. Treasury bonds, which ranks 18th in the world, surpassing South Korea. Due to market growth by 2030, the amount of government bonds held by both companies could reach levels close to those of China.
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U.S. Treasury Secretary Yellen predicts that the market capitalization of stablecoins will reach about 10 times.
U.S. Treasury Secretary Scott Bethancourt stated on the 12th at a Senate Appropriations Subcommittee hearing that the market size of dollar-pegged stablecoins could reach over $2 trillion. He reiterated the potential of digital assets to strengthen the position of the U.S. dollar in the global financial system.
Mr. Besent pointed out that despite historical moments when the status of the US dollar has been questioned, new factors have allowed the currency to regain its momentum, drawing on his experience as an expert in the hedge fund sector within the foreign exchange field. He stated that the current administration is committed to maintaining and strengthening its status as a reserve currency.
The bill currently under deliberation in Congress includes a provision requiring that dollar-denominated stablecoins be backed by high-quality assets such as U.S. Treasury bonds. Mr. Besant stated, "The legalization of stablecoins backed by U.S. Treasury bonds will create a market for the expanded use of the U.S. dollar through stablecoins globally."
Market forecasts indicate that stablecoins are expected to reach a market capitalization of $2 trillion within a few years (currently at $255 billion). Citigroup had previously released a modest forecast stating that additional purchases of government bonds will exceed $1 trillion by 2030, but Mr. Besant expressed an optimistic outlook, stating that $2 trillion is "a very reasonable figure and it is also possible that it could exceed that significantly."
According to the latest report from ARK Investment, stablecoin issuing companies have already become major purchasers of U.S. Treasury bonds. Tether and Circle together hold approximately $120 billion in U.S. Treasury bonds, which ranks 18th in the world, surpassing South Korea. Due to market growth by 2030, the amount of government bonds held by both companies could reach levels close to those of China.