Stablecoins and U.S. Treasuries

Stablecoins are digital tokens pegged to a reference asset (often USD). Major USD stablecoins typically keep reserves in cash, U.S. Treasuries, and short‑term bills.

Links between Stablecoins and Treasuries

• Reserve backing: Treasuries form a large share of collateral for leading USD stablecoins.
• Yield passthrough: short‑term Treasury yields influence the interest income earned on reserves.
• Demand channel: rapid growth in stablecoin circulation can increase demand for short‑dated Treasuries.
• Risk considerations: liquidity management, transparency of attestation, and regulatory frameworks.

Educational explainer. This page is not investment advice.