- Bank of America sees major stablecoin-driven inflows into Treasuries
- Crypto’s role in traditional finance is expanding
- This shift may enhance liquidity in U.S. debt markets
Bank of America (BoA) has issued a bold projection: stablecoin demand for U.S. Treasuries could increase by as much as $75 billion. With stablecoins becoming a backbone for digital finance and decentralized ecosystems, issuers are increasingly turning to safe, liquid assets like Treasuries to back their tokens.
This potential $25B–$75B influx would mark a deepening link between the crypto sector and traditional financial markets. Stablecoins such as USDT and USDC, which are pegged to the U.S. dollar, need solid reserves to maintain trust and value stability — and Treasuries are the top choice.
Why Bank of America Sees a Shift
According to BoA, the growth of stablecoin usage in areas like payments, remittances, and decentralized finance ( DeFi ) will require issuers to hold more government debt to support demand. As stablecoins scale globally, the assets backing them must also grow — and Treasury bills offer security, yield, and liquidity.
Circle, the issuer of USDC, and Tether already hold billions in Treasuries. With regulators paying closer attention and global usage rising, BoA suggests this number could rise substantially.
Crypto’s Expanding Role in Finance
This trend could influence broader market dynamics. More stablecoin money in Treasuries might boost liquidity in U.S. debt markets and increase the importance of crypto in global finance.
BoA’s prediction illustrates a bigger picture: crypto is no longer on the sidelines. It’s increasingly playing a role in mainstream financial systems, reshaping how capital moves and where it is stored.
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