TechFlow news — Bitwise senior investment strategist Juan Leon said the importance of stablecoins in the U.S. Treasury market has been underestimated. Leon noted that although stablecoins currently account for about 1% of U.S. Treasury purchases, this proportion could soon rise to 15%, making them the third-largest holder.
The market capitalization of stablecoins has grown from zero to $170 billion in just a few years, and clear regulation is still lacking. The U.S. Congress has shown bipartisan support for stablecoin legislation, and Federal Reserve officials have acknowledged that stablecoins can enhance the global reach of the U.S. dollar and support the Treasury market.
With Europe set to implement stablecoin regulations by 2025, the United States is following suit, paving the way for stablecoins to become more deeply embedded in the digital economy.
Leon predicts that as AI agents become widespread, stablecoins will become the preferred mechanism for digital commerce. The digital economy already accounts for 15% of the global economy and is growing two to three times faster than traditional sectors. Stablecoin adoption is increasing exponentially, and the expansion from $170 billion to $1 trillion will happen faster than the initial growth from zero to $170 billion. At that point, Treasuries purchased via stablecoins will surpass those held by the top ten money market funds, positioning stablecoins among the top three holders.
