BoE FPC member: mass stablecoin redemptions could hit the US Treasury market
- —Wilkins: stablecoins strengthen the dollar and demand for US Treasuries
- —Tether and Circle held about $150 billion in Treasury Bills at the end of 2025
- —Over the year, issuers bought roughly $33 billion more in US government bonds
- —The stablecoin market has exceeded $300 billion, with 98% pegged to the dollar
Why it matters: Stablecoins have become a major holder of US government debt, and a wave of redemptions could amplify volatility in the Treasuries market.
Source: Coincierge