Stablecoins Now Hold More U.S. Treasury Securities Than Major Nations ETHDONUTUSDCDAISETHTUSDCDAIUSDCDAIDAIUSDCDAIDAIUSDCX 2mon ago by r/ethtrader

Latest insights by Onchain.org have revealed that stablecoin issuers now have a greater holding of U.S. Treasury Securities than several major economies including South Korea, Australia, and Germany. Sharing the insight on X, michmoneta wrote: https://preview.redd.it/wu83jx5tk1ie1.jpg?width=1047&format=pjpg&auto=webp&s=6bfd9ddac77f39c729d57dab333bc1c97d9a2a8a https://preview.redd.it/5xsowpmvk1ie1.jpg?width=1764&format=pjpg&auto=webp&s=8ceb7bb628a35b5f125dfcf215f26d4a07acebfe What you should know Treasury securities (like you know, those T-bills and T-notes etc) are basically like giving the government a loan and you get interest back in return together with your capital. What makes this development newsworthy is that Stablecoins are the only non-sovereign, corporate-driven entity on the chart. In other words, they are beginning to compete with national governments in holding U.S. debt. The best part is that unlike national governments, stablecoins are not constrained by traditional monetary policies and can acquire more T-bills as their reserves grow. By so doing, stablecoins become even more secure as Treasury Securities holdings serve as reserves to back their tokens with liquid, low-risk assets. In the years to come we'd see stables among the top 5 holders of Treasury Securities because as demand for stablecoins grows, issuers acquire more Treasury Securities to ensure they have enough collateral to cover redemptions. This is bullish for Ethereum because it provides the infrastructure for stables like USDC and DAI to thrive, and as stablecoins continue growing and accumulating Treasury Securities, they will begin influencing short-term treasury rates making them - and invariably ETH - a new kind of systemic financial player. submitted by /u/BigRon1977 [link] [comments]