The world economy is transforming, making investments in U.S. Treasury bonds an attractive area for the crypto market.
Formation of Government Debt
According to the Institute of International Finance, global debt exceeded $323 trillion at the end of 2024. The main reason for the U.S. debt increase is the chronic budget deficit. The deficit is expected to remain at $1.48 trillion per year until 2029.
Stablecoins and Their Backing
Stablecoins like USDT and USDC are backed by significant reserves in U.S. government debt. At least 65% of USDT assets are backed by government debt, while 39% of USDC assets are directly invested in U.S. Treasury debt.
Role of DeFi in Government Debt
The DeFi sector is also actively investing in U.S. government debt, with the market capitalization of such products exceeding $5.1 billion. New stablecoins like Paxos’ Lift Dollar are offering a 5% yield tied to government debt.
Government debt and crypto economy are increasingly interlinked, providing unique opportunities for synergy between traditional and digital markets.
