Stablecoin Growth Spurs Dollar Dominance and US Treasury Demand

A Bank of England official, Carolyn Wilkins, has warned that the growth of stablecoins could reinforce the US dollar's global dominance and increase demand for US Treasurys.

The rise of stablecoins has made cross-border settlement easier, expanding access to dollar-linked assets outside the US and increasing demand for Treasurys held as reserves.

Tether's USDt (USDT) and Circle's USDC (USDC) are among the largest stablecoin issuers, holding nearly $150 billion in Treasury bills at the end of 2025 and buying roughly $33 billion during the year.