U.S. Treasury Secretary Scott Bessent said the administration regards passage of the GENIUS Act as “essential to securing American leadership in digital assets,” arguing that regulated stablecoins could widen access to the dollar for billions of people and generate a “surge in demand for U.S. Treasuries.” His remarks follow private discussions with issuers Tether and Circle on how the government might tailor short-term debt issuance to meet rising demand from the sector, according to the Financial Times.
Bessent has signalled to Wall Street that he expects the stablecoin market to reach roughly $2 trillion and become a significant buyer of government securities, potentially easing concerns about financing the expanding federal deficit. Stablecoins are typically backed one-for-one by cash or Treasury bills, meaning each new token issued translates into incremental demand for the underlying bonds.
Goldman Sachs echoed the Treasury’s optimism in a research note this week, describing the industry as being on the brink of a “stablecoin gold rush” with a total addressable market in the trillions of dollars as payment, settlement and cross-border remittance platforms adopt programmable money. The bank estimated a compound annual growth rate of about 40% for USD-denominated coins through 2027, citing clearer U.S. regulation and global appetite for dollar exposure.
If the projections materialise, stablecoins would deepen liquidity at the short end of the Treasury curve while reinforcing the dollar’s role in global finance. Critics, however, caution that the instruments may reallocate rather than increase net demand for government debt, leaving the ultimate impact on funding costs uncertain.
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Source: https://thedefiant.io/news/regulation/bessent-says-stablecoins-drive-trillion-dollar-demand-u-s-treasuries-14f8b915
