EddieJayonCrypto
16 May 25
Stablecoin issuers are projected to hold over $1 trillion in U.S. Treasuries by 2030, potentially surpassing current top holders like China and Japan. Currently, stablecoins hold about $150 billion in U.S. government securities out of a $242 billion market cap, with forecasts estimating the market c...
Stablecoin issuers are projected to hold over $1 trillion in U.S. Treasuries by 2030, surpassing major foreign holders like Japan and China. Currently, stablecoins hold about $150 billion in U.S. government securities out of a $242 billion market cap, with forecasts estimating the market could grow to $2 trillion by 2028. The Treasury Borrowing Advisory Committee (TBAC) and Citi foresee stablecoins becoming a significant factor in U.S. debt holdings, especially as some governments reduce their U.S. debt.
Interest payments on stablecoins could attract deposits away from traditional banks, although banks might adapt by issuing or custodizing stablecoins. Legislative uncertainty remains, with debate over the GENIUS Act in Congress, amid concerns about money laundering and national security risks.
Separately, Malaysia’s Securities Commission is consulting on new regulations for tokenized securities, focusing initially on digital twin representation tokens and ensuring compliance with existing laws. The framework defines tokenized capital market products as digital representations of traditional assets such as securities, derivatives, and unit trust schemes. Issuers must maintain legal consistency between tokens and underlying assets, demonstrate proficiency in distributed ledger technology, and adhere to anti-money laundering and investor protection rules. The consultation period ends June 16, 2025.