{"id":18220,"date":"2024-10-31T11:56:12","date_gmt":"2024-10-31T09:56:12","guid":{"rendered":"https:\/\/forklog.com\/en\/us-treasury-reports-increased-demand-for-bonds-driven-by-stablecoins\/"},"modified":"2024-10-31T11:56:12","modified_gmt":"2024-10-31T09:56:12","slug":"us-treasury-reports-increased-demand-for-bonds-driven-by-stablecoins","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/us-treasury-reports-increased-demand-for-bonds-driven-by-stablecoins\/","title":{"rendered":"US Treasury Reports Increased Demand for Bonds Driven by Stablecoins"},"content":{"rendered":"<p>The rise of stablecoins has led to increased demand for short-term US Treasury bonds, according to a <a href=\"https:\/\/home.treasury.gov\/system\/files\/221\/CombinedChargesforArchivesQ42024.pdf#page=107\">report<\/a> from the Treasury Department.<\/p>\n<p>The department estimates that stablecoin issuers have invested $120 billion in debt securities.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>&#8220;Stablecoins play an integral role as intermediaries in transactions on digital asset markets. More than 80% of all cryptocurrency operations currently use &#8216;stablecoins&#8217; as one stage of the transaction,&#8221; the Treasury report states.<\/p>\n<\/blockquote>\n<p>The department also expressed its views on the future of these instruments, stating that while it expects further growth, stablecoins may face obstacles.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>&#8220;Medium-term regulatory and policy decisions will determine the fate of this &#8216;private currency.&#8217; History shows that such products, when non-compliant, lead to financial instability and are generally highly undesirable,&#8221; the report asserts.<\/p>\n<\/blockquote>\n<p>The department believes that structural demand for Treasury bonds may increase as the cryptocurrency market grows.<\/p>\n<p>In August, Tether <a href=\"https:\/\/forklog.com\/en\/news\/tethers-net-profit-reaches-5-2-billion-in-first-half-of-2024\">reported<\/a> direct investments in US debt securities amounting to $80.9 billion, with the figure reaching $97.6 billion when including cash and other equivalents.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The rise of stablecoins has led to increased demand for short-term US Treasury bonds, according to a report from the Treasury Department. The department estimates that stablecoin issuers have invested $120 billion in debt securities. &#8220;Stablecoins play an integral role as intermediaries in transactions on digital asset markets. More than 80% of all cryptocurrency operations [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":18219,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"","news_style_id":"","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1431,807,26],"class_list":["post-18220","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-bonds","tag-stablecoins","tag-usa"],"aioseo_notices":[],"amp_enabled":true,"views":"47","promo_type":"","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/18220","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=18220"}],"version-history":[{"count":0,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/18220\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/18219"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=18220"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=18220"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=18220"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}