The US Treasury Secretary is betting that stablecoins will become key buyers of US debt, promoting the integration of cryptocurrencies into the financial core

US Treasury Secretary Vincent Bescent is betting that the cryptocurrency industry will be a key buyer of US Treasuries in the coming years, as the US government seeks to shore up demand for a mountain of new debt. People familiar with the matter said Mr. Bescent has sought information from major stablecoin issuers such as Tether and Circle, discussions that have influenced the Treasury's plans to increase short-term treasury securities sales in the coming quarters. The US Treasury hopes stablecoins will be a key source of demand for US government bonds, in the latest sign of the White House's push to bring cryptocurrencies into the heart of US finance. Jay Barry, head of global interest rate strategy at JPMorgan, one of the largest dealers in the US bond market, said: "[Secretary Bescent and the Treasury] absolutely believe that stablecoins will be a real source of new demand for US Treasuries. This is definitely why he feels at ease [about increasing the proportion of short-term debt issuance]. " (Jin Ten)