Headline: Stablecoin Boom Is Now a Major Source of Demand for U.S. Treasuries Stablecoins have graduated from a niche trading tool to one of crypto’s largest, most widely used categories — and that shift is starting to matter to traditional markets. New data from Token Terminal shows global stablecoin holders have topped 200 million, a figure that has climbed steadily over the past two years as use cases spread beyond trading into payments, remittances and even savings. Key takeaways - User growth: More than 200 million global holders, per Token Terminal — driven by real, utility-focused adoption of stablecoins as digital cash. - Network concentration: Ethereum currently hosts roughly 60% of all stablecoin supply, though its dominance has eased as other chains and issuers compete. - Supply growth: Total stablecoin supply is expanding rapidly. Analysts expect more than $1.7 trillion of additional stablecoins to move on-chain over the next three years. - Network impact: Even if Ethereum’s share drops to 50% by 2028, it would still absorb about $850 billion of that new supply — illustrating how a declining market share can still mean huge absolute growth. Why U.S. Treasuries matter Stablecoin issuers typically back each token with a matching dollar in low-risk U.S. dollar assets to maintain trust and liquidity. At scale, that reserve model creates significant demand for short-dated, liquid instruments — and U.S. Treasury bills have emerged as the go-to reserve asset. That dynamic means the growing stablecoin ecosystem is now acting like a buyer of U.S. government debt, channeling large dollar flows into the Treasury market. A crowded field, same reserve logic The reserve-driven demand for Treasuries spans a diverse set of issuers — including many operating outside proposed regulatory frameworks such as the GENIUS Act. Regardless of structure, the basic mechanics are the same: each new dollar of stablecoin issuance typically translates into demand for an equivalent dollar in safe USD assets. Bottom line Stablecoins are no longer just a crypto plumbing tool — their expansion is generating meaningful macro flows into short-dated Treasuries, linking digital-dollar demand to traditional government debt markets in a way that investors and policymakers will want to watch closely. Source: Token Terminal. This article is based on reporting by AMBCrypto. Disclaimer: This content is for informational purposes only and is not investment advice. Trading or investing in cryptocurrencies carries significant risk. Do your own research before making any financial decisions. © 2025 AMBCrypto Read more AI-generated news on: undefined/news

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