Stablecoin and US Budget Financing – Update & Scenarios.
On current trends, marginal stablecoin supply appears to be funding about 15% of U.S. Treasury bill issuance in 2026. If stablecoin market capitalisation rises from US$323bn to US$400bn this year, stablecoins would fund almost 25% of Treasury Bill new issuance.
SC represents a significant portion of demand for new issuance of US T-Bills. This would help to suppress short-term Treasury bill yields regardless of fundamentals such as inflation.
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