US Treasury Secretary Bets on Stablecoins as Key Buyers of US Treasuries, Advancing Cryptocurrency Integration into the Financial Core

BlockBeats News, August 20 — According to the Financial Times, U.S. Treasury Secretary Bessent is betting that the cryptocurrency industry will become a key buyer of U.S. Treasuries in the coming years, as the U.S. government seeks to support demand for a massive influx of new government bonds.

Sources familiar with the matter said that Bessent has sought information from major stablecoin issuers such as Tether and Circle, and these discussions have influenced the Treasury’s plans to increase short-term Treasury bill sales in the coming quarters.

The U.S. Treasury hopes that stablecoins will become a crucial source of demand for U.S. government bonds, marking the latest sign that the White House is pushing for cryptocurrencies to enter the core of the U.S. financial system. Jay Barry, Global Head of Interest Rate Strategy at JPMorgan, one of the largest dealers in the U.S. bond market, stated, “(Secretary Bessent and the Treasury) absolutely believe that stablecoins will be a real source of new demand for U.S. Treasuries. This is definitely why he feels reassured about increasing the proportion of short-term debt issuance.” (Jin10)