24/08/2026
🇺🇸 On August 24, The Wall Street Journal highlighted an unexpected link between the rapid growth of stablecoins and the US government debt market.
Under the GENIUS Act, regulated payment stablecoins must be backed 1:1 by permitted liquid assets, including short-term US Treasuries. This means that as stablecoin supply grows, issuers may need to buy increasing amounts of US government debt.
The market is already around $300 billion, and some projections cited by WSJ see it potentially reaching $4 trillion. At that scale, stablecoin issuers could become a meaningful source of demand for Treasury bills.
The irony is hard to miss: an industry once built as an alternative to traditional finance could end up supporting one of its foundations.
Stablecoins are putting dollars on-chain — and may simultaneously strengthen demand for the debt behind them.