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Stablecoin issuers emerge as growing buyers of US debt

Original: # Stablecoins are essential to the health of the federal balance sheet Stablecoin issuers back their dollar-pegged asset

Stablecoin issuers are holding short-dated US Treasuries to back their dollar-pegged tokens, making them a meaningful new source of demand for US government debt. Commentators argue the sector is picking up slack left by traditional buyers who have lost appetite for Treasuries, and that stablecoins have become essential to the health of the federal balance sheet.

Why now: Debate is rising over how much stablecoin demand now props up the US Treasury market as traditional buyers retreat.

Stablecoin issuersUS TreasuryFederal Reserve

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Evidence

• # Stablecoins are essential to the health of the federal balance sheet Stablecoin issuers back their dollar-pegged assets with short-dated U.S. Treasuries. As the industry expands, they are picking up the slack left by traditional buyers who have soured on U.S. government debt.… · AlexJimenez@mas.to · 1

API: https://socialmediatrends-api.osmike.com/v1/trends/3662375