Stablecoins Could Increase Treasury Demand, but Only by Reducing Demand for Other Assets

Stefan Jacewitz

Economic Bulletin, 2025, 4

Abstract: Many expect the establishment of a U.S. framework for stablecoins to increase demand for Treasuries, thereby supporting the Treasury market. Although stablecoin issuers are currently only a small part of the Treasury market, they could become a much larger part under some external projections. However, such a large funding shift could have important implications for other parts of the economy, such as a possible reduction in the supply of credit.

Date: 2025
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