State Street Global: stable currency will bring huge incremental demand for US treasury bond bonds, or exceed the growth of US bond supply

Odaily Planet Daily News According to foreign media reports, at a money market fund meeting held in Boston this week, stabilizing the currency may boost the demand for short-term US treasury bond bonds to become a hot topic. The attending investors expect that stablecoins will absorb a large amount of US Treasury supply later this year. The stable currency is usually linked to highly liquid assets such as the US dollar. To maintain a 1:1 value link, its issuer needs to hold a large number of highly liquid security reserves, which usually means buying US treasury bond bonds. Yee Hsin Hung, CEO of State Street Global Investment Management, stated that stablecoins are attracting significant demand to the US Treasury market. Currently, about 80% of the stablecoin market is invested in US Treasury bills or repurchase agreements, with a size of approximately $200 billion. Although it accounts for less than 2% of the entire US Treasury market, the growth rate of stablecoins is very fast and is likely to exceed the growth of US Treasury supply. (Golden Ten)