TechFlow, Aug 20 — According to the Financial Times citing Jinshi Data, U.S. Treasury Secretary Bessent is betting that the cryptocurrency industry will become a key buyer of U.S. government debt in the coming years, as the U.S. government seeks to support demand for its massive new bond issuance.
Insiders said Bessent has reached out to major stablecoin issuers such as Tether and Circle for information, and these discussions have influenced the Treasury's plans to increase short-term bill sales over the next few quarters. The U.S. Treasury hopes stablecoins will become a significant source of demand for U.S. government bonds, marking the latest sign of the White House pushing cryptocurrencies into the core of the U.S. financial system.
Jay Barry, JPMorgan's global head of rates strategy—the bank being one of the largest dealers in the U.S. bond market—said: "The Secretary and the Treasury absolutely see stablecoins as a real source of new demand for Treasuries. That’s absolutely why he feels comfortable increasing the share of short-term debt issuance."
