TechFlow, August 21 — According to CoinDesk, a recent research report from Bank of America indicates that stablecoins are expected to increase demand for U.S. Treasury bills by $25 billion to $75 billion over the next 12 months. However, this growth will not significantly alter the dynamics of the Treasury bill market, but instead pose greater competitive challenges to money market funds (MMFs).
The report states that some MMF investors are actively exploring tokenization as a defensive measure against competition from stablecoins. In July this year, BNY Mellon and Goldman Sachs launched blockchain-based technology to record ownership of specific MMF shares, marking the first successful transfer of tokenized MMF shares.
Since stablecoins are currently unable to pay yields, money market funds have a limited window of time to complete tokenization and offer competitive returns, in response to potential future regulatory changes or innovation breakthroughs in the stablecoin industry.
