U.S. Treasury Eyes Stablecoin Growth as Debt Financing Tool

Treasury Secretary Scott Bessent is courting the stablecoin industry as a potential lifeline for U.S. government debt financing. The $250 billion sector, expected to balloon to $2 trillion, could become a major buyer of Treasury bills under regulatory frameworks like July's GENIUS Act.

Discussions with Tether and Circle highlight the strategic pivot toward short-term debt instruments. Stablecoin reserves, mandated to hold ultra-liquid assets including Treasuries, create a symbiotic relationship between digital currency expansion and government borrowing needs.

JP Morgan's Jay Barry notes this validates the Treasury's bill-focused issuance strategy. The MOVE comes as record deficits and Trump-era fiscal policies strain traditional debt markets, positioning stablecoins as an unconventional but increasingly vital participant in sovereign finance.