Stablecoins backed 1:1 by U.S. dollars or Treasuries can increase demand for government bonds and prompt higher short-term debt issuance. New regulatory clarity, exemplified by the GENIUS Act, is expected to legitimize and scale the stablecoin market toward multitrillion-dollar potential. Major financial institutions forecast market-share gains for key stablecoins like USDC as exchanges and legislation support adoption. Widespread stablecoin use could expand global access to the dollar economy and payments infrastructure. Some critics contend that much of the effect may represent redistribution of existing deposits rather than net new Treasury demand.
This groundbreaking technology will buttress the dollar's status as the global reserve currency, expand access to the dollar economy for billions across the globe, and lead to a surge in demand for US Treasuries, which back stablecoins. The GENIUS Act provides the fast-growing stablecoin market with the regulatory clarity it needs to grow into a multitrillion-dollar industry,
Stablecoins are a $271bn global market, and we believe USDC [the stablecoin issued by Circle] benefits from market share gains on and off of partner Binance's platform, as ongoing stablecoin legislation legitimizes the ecosystem, and the crypto ecosystem expands, also potentially catalyzed by legislation. Based on current trends a
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