Headline: Stablecoins’ boom is quietly turning crypto into a buyer of U.S. Treasuries Stablecoins have graduated from a niche trading tool to one of the largest and fastest-growing corners of crypto — and the consequences are spilling into traditional finance. Key takeaways - Global stablecoin holders have topped 200 million, driven by broader use cases such as payments, remittances and savings, according to Token Terminal. - Ethereum currently hosts roughly 60% of stablecoin supply, but its share has eased as new issuers and chains compete. - Analysts expect more than $1.7 trillion of additional stablecoin supply to move on-chain over the next three years. Even if Ethereum’s market share slips to 50%, that still implies about $850 billion of new stablecoins flowing onto the network by 2028. - As issuance grows, stablecoin issuers increasingly park reserves in safe, liquid assets — primarily short-dated U.S. Treasury bills. That reserve logic means every new dollar of stablecoin typically needs a corresponding dollar in low-risk USD assets, turning stablecoin expansion into material demand for short-term Treasuries. - The trend cuts across many issuers, including firms operating outside established regulatory frameworks (for example, those not covered by proposed or existing regulatory measures such as the GENIUS Act), but the reserve-management incentives remain consistent. Why this matters The stablecoin market’s scale no longer looks like an isolated crypto-native phenomenon. When millions of users adopt stablecoins as “digital cash,” the on-chain movement of dollars grows substantially — and so does the need to back those tokens with liquid, trustworthy assets. That mechanism is creating a steady, institutional-sized buyer for U.S. government debt, particularly T-bills, and links the health and growth of crypto markets more tightly to traditional Treasury demand and rates. Bottom line Stablecoin adoption is driving real-world capital flows into safe short-term government securities. For policymakers, market participants and macro observers, that’s an important dynamic to watch as the sector scales toward the trillion-dollar mark. Disclaimer: This summary is informational and not investment advice. Crypto trading carries high risk; do your own research before making financial decisions. Data cited from Token Terminal. Content adapted from AMBCrypto, © 2025. Read more AI-generated news on: undefined/news

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