Citigroup: The growth of stablecoins drives an increase in demand for U.S. short-term Treasury bonds, reflecting the dominance of the dollar

ChainCatcher news, according to a report by CoinDesk, Citigroup's latest report indicates that as the use of stablecoins in the cryptocurrency market and traditional finance grows, the demand for U.S. Treasury bills is also on the rise.
The report emphasizes that dollar-backed stablecoins (such as USDT) dominate crypto trading and blockchain payments, reflecting the dollar's status as the world's reserve currency. Relevant legislation being considered by Congress may further solidify this trend by requiring reserves to hold short-term government debt. Meanwhile, traditional financial giants like PayPal and Visa are also beginning to explore applications for stablecoins. Citigroup predicts that by 2030, the stablecoin market size could reach between $1.6 trillion and $3.7 trillion.