WASHINGTON–U.S. Treasury Secretary Scott Bessent said he is counting on the cryptocurrency sector to become a key purchaser of Treasuries, and that he further expects that stablecoins will become a crucial driver of demand for government bonds.
According to the Financial Times, Bessent has held discussions with stablecoin issuers such as Tether and Circle, and those talks helped guide the Treasury Department’s plans to increase sales of short-term bills in the coming quarters.
The FT said the this effort is the latest signal of the Trump administration’s push to make crypto at the center of the U.S. finance system, as the CU Daily has also been reporting.
Jay Barry, head of global rates strategy at J.P. Morgan Chase, told the Financial Times Bessent and the Treasury “absolutely think that stablecoins will be a real source of new demand for Treasuries” which is “absolutely why [Bessent] is comfortable weighting issuance towards [short-term debt].”
The FT report noted the recently-passed GENIUS Act, which had credit union support, requires stablecoins to be backed by a certain “ultra-safe and ultra-liquid” assets, including Treasury bills.
‘Significant Development’
“The recent passage of the GENIUS Act is a significant development in which we are monitoring as it will promote innovation in stablecoins and grow demand for short-term Treasury securities,” The Treasury department said in a statement to the Financial Times.
