TechFlow news, September 18 — According to Coindesk, Alexander Deschatres, Head of Sponsor Coverage for Asia at Standard Chartered Bank, said on Wednesday that the $170 billion stablecoin supply could support demand for tokenized U.S. Treasuries. Speaking during the Token2049 conference in Singapore, Deschatres stated, “The $170 billion stablecoin supply represents a pool of potential liquidity that can be channeled into money market tokens and Treasury tokens, potentially mitigating negative impacts from Federal Reserve rate cuts.” He emphasized that even in a lower-rate environment, Treasury yields still offer a significant advantage over passively holding stablecoins.
Data shows that since early January 2024, the market capitalization of tokenized Treasury products has surged from $100 million to over $2 billion, driven primarily by demand from U.S. investors. Notably, BlackRock’s USD Institutional Digital Liquidity Fund has attracted more than $500 million in inflows. While the upcoming Fed rate-cut cycle may affect demand for tokenized Treasuries, the existence of the stablecoin market could partially offset this impact by offering investors an alternative asset allocation option.
