Citi: Stablecoin growth drives up demand for U.S. short-term Treasury bonds, reflecting the dominance of the dollar

According to CoinDesk, Citigroup's latest report points out that with the growing use of stablecoins in the crypto market and traditional financial sector, the demand for U.S. short-term Treasury bonds has also risen. The report emphasizes that the dominance of dollar-backed stablecoins (such as USDT) in crypto transactions and blockchain payments reflects the status of the U.S. dollar as a global reserve currency.
Legislation under consideration in Congress could further underpin this trend, requiring reserves to hold short-term government debt. At the same time, traditional financial giants such as PayPal and Visa are also beginning to explore stablecoins. Citi forecasts that the stablecoin market could reach $1.6 to $3.70 trillion by 2030.