A recent study by the Bank for International Settlements (BIS) has pointed out that the rapid growth of stablecoins is having a significant impact on the U.S. Treasury bond market. Dollar-pegged stablecoins have already become players that can influence Treasury bill yields.
Role of Stablecoins in U.S. Bond Market
According to BIS, by spring 2025, the reserves held in stablecoins reached $200 billion. In 2024 alone, they purchased approximately $40 billion in Treasury bills, comparable to the purchases of major foreign governments. Major issuers like Tether (USDT) and Circle (USDC) dominate this market.
Impact Analysis of Stablecoins on Bond Yields
The BIS study shows that an inflow of $3.5 billion into stablecoins lowers the yield on 3-month Treasury bills by 2-2.5 basis points, while a similar outflow raises it by 6-8 basis points within ten days. These effects are not observed on longer maturities, indicating significant influence of stablecoins on short-term rates.
Regulation of Stablecoin Market in the U.S.
According to the new law passed by Congress in July 2025, stablecoins must be backed by assets such as cash or short-term Treasury bills. This might lead to increased demand for Treasury securities but also raises concerns about potential risks to financial stability.
Thus, the BIS study raises important questions regarding the ability of stablecoins to influence the Treasury bond market and warns of possible negative impacts on financial stability in the event of large-scale outflows. Researchers and regulators continue to closely monitor the situation.
