Stablecoins and U.S. Treasury Bonds: A Complex Relationship

This chapter explores the intricate relationship between stablecoin issuance and U.S. Treasury bonds, focusing on the Federal Reserve's preferences and the necessity for private credit engagement. It highlights the anticipated growth of stablecoins, emphasizing their liquidity benefits and the need for adaptive regulatory approaches in a changing financial landscape. Furthermore, the discussion underscores the importance of strategic partnerships within the industry to navigate the challenges and opportunities presented by the stablecoin market.