@fehrsam
Will stablecoins become the world's largest owners of US Treasuries?
đź’µ
It seems possible that crypto stablecoins become the largest holders of US Treasuries in the world. Putting up $1000 for the one layer deeper analysis to support or debunk that thesis.
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@fehrsam
Thesis:
- Stablecoins $150bn market cap
- Probably mostly held in Treasuries
- ~#16 on list of US Treasury holders today
- Largest holders today: Japan $1.1tn, China $770bn (and declining)
- Stablecoins will 10x in market cap in ~10 yrs
- This could make stablecoin issuers one of largest global holders of Treasuries
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@fehrsam
…all with the backdrop of foreign appetite for US Treasuries declining and a Treasury auction that almost failed last year. If true, not only are stablecoins spreading the dollar, they would be a critical “sink” for Treasuries.
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