“Some Might Say Say Boring, But Stablecoins Are Become A Lever on Treasury Liquidity – and A Source of Debate Over Wheth Wheether.”, – WRITE: www.coindesk.com
While Traders Fixated on Jerome Powell’s Latest Rate Signals, The More Consequential Story May Be Playing Out in Stablecoins.
The Sector Has Nearly Doubbled in a Year to $ 280 Billion, with most Issuers Holding Short-Treasuries as collateral. That ties Crypto Liquidity More Directly to Federal Reserve Policy than Ever Before, accounting to okx Singapore Ceo Gracie Lin.
(Defillama)
“While Markets Are Still Digesting Powell’s Latest Comments on Rates, A More Consequential Long-Term Shift is HapPening Beyond the Charts and Headlines. It’s in the so-called ‘boiling’ Long-Term Price Signals, “Lin Told Coindesk in A Note.
“The NEXT STEP IS UNIFICATION – STABLECOINS HAVE BUILT The RAILS, NOW they NEED A unified Market that delivers Liquidity, Efficiency and True Utility for Investors,” Lin Continued.
Coinbase Analysts Project the Market Could Swell To $ 1.2 Trillion by 2028, Forcing $ 5.3 Billion of New Treasury Purchases Each Week. The Inflows May Marginally Lower Yields, But The Risk Runs in Reverse: Redemption Surges Cold Trigger Forced Selling of Bills, Draining Liquidity.
The debate Continued in a recent of Episode of Goldman Sachs’ Exchanges Podcast, WHERE UC BERKELEY’S Barry Eichengreen Warned that Stablecoins Could Replicate The Money-Market.
“WHEN A dollar Money Market Share Fell To 97 CENTS IN 2008, Chaos Broke Out, Contagion Fears Spread, and The Government Steped in To To Gurante Funds,” He Said.
Former US CompTroller of the Currency Brian Brooks Counted on the Podcast That New Genius Act, WHICH REQUIRS ONE-TO-ONO-ONE Treasury Backing, Mirrs The National Banking Reforming ReFFOR Banking ”era.
“Supervision Equals Safety,” HE SAID. “Every Time A New Token is Issued, Another Dollar of Treasury Securities Has to Be Bough.”
This Tug-of-War CAPTures The Macro Dilemma.
Coinbase’s Model Shows Stablecoins Sharing Basis Points Off Treasury Yields, Brooks Calls It A New Engine of Global Dollar Demand, and Eichengreen Warns of A 2008 Lin, Meanwhile, Argues The Rails Are Already There – and the Question Is Whtcher they unify into a market that steadies the synem or fracture intostruments that Amplify Shocks.
Market MovementsBTC: BTC is Currently Trading Above $ 111.300. Coindesk Market Data Shows that the World’s Largest Digital Asset is Trading Within A Tight Intradoy Range, Which Suggests Consolidating Sentiment. Markets Appear Cautiouos Amid Macro Uncertainty, with Investors Patiently Waiting for Further Momentum or Directional Cues.
Eth: ETH IS TADING AT $ 4,320, Showing Modest Upside (+0.6%) Intrady, Hinting at Renewed Investor Interest Following Recent Gains. The Broader Crypto Recovery, Particularly in Altcoins, Sems to Be Bolstering Demand.
GOLD: Gold Recently Crossed $ 3,540 An OUNCE, PUTTING IT A Fresh All-Time Closing High. The Rally Is Being Driven by Surging Experts for an Upcoming Fed Rate Cut as Well As Heigheted Uncertainty Over US Tariffs and Political Pressure on the Fed. INVESTORS Are FLOCKING to GOLD AS A SAFE -HAVEN AMID AMID THESE RISKS.
Nikkei 225: The Nikkei 225 Remains Steady Within Its Current Range, Reflection Cautious Optimism Among Investors. The Rise Follows A Broader “Ninja Stealth Rally” in Japanese Equities, Driven by Strong Foreign Inflows, Reforms, and Shifting Global Capital trends Town Japan.
Elsewhere in Crypto
- Jack ma-linked yunfeng financial to Build Ether Treasury Starting with $ 44m Eth Purchase (Coindesk)
- Jito Executives Explore the Impact of the Sec’s Liquid Staking Decision (The Block)
- Ethereum Foundation to Unload Another 10k Eth Following Sharplink Deal (Coindesk)
Dogecoin Rebounds from Midday Selloff as WHALE ACCUMULATION AND ETF SPECULATION DRIVE HEAVY Trading Activity.
Trading Volume Surged 21% Above Weekly Aves, Indicating Strong Market Participation.
SPECULATION ON ETF Approval and Anticipated Fed Rate Cuts Are Key Factors Influencing Doge’s Price Movements.
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