Stablecoin Treasury Growth Offsets China’s Retreat, SF Fed Study Finds

A study by the Federal Reserve Bank of San Francisco indicates that the growth in stablecoin treasuries has partially offset the decline in China’s holdings of U.S. securities. While stablecoin issuers favor short-term debt, the reduction in China’s holdings is primarily concentrated in longer-dated securities. The authors note that future demand for these assets depends on the composition of stablecoin holders.