Stablecoin Treasury Growth Partly Offsets China's Retreat, SF Fed Study Finds
- —Stablecoin issuers allocate mainly to short-term US debt
- —China's decline is concentrated in longer-dated securities
- —Further Treasury demand hinges on the profile of stablecoin buyers
Why it matters: Stablecoin issuers are becoming a meaningful source of demand for US Treasuries, tightening their link to macro and debt markets.
Source: The Defiant