Bitwise CIO Matt Hougan Forecasts Significant Stablecoin Growth

Bitwise CIO Matt Hougan anticipates substantial growth for stablecoins, supported by recent research from the San Francisco Federal Reserve. The report indicates that stablecoin issuers have become major buyers of US Treasury securities, offsetting over 40% of the decline in Chinese holdings of US government debt since 2021. Between 2021 and mid-2026, issuers added approximately $200 billion in Treasury holdings, with their purchases of short-term bills surpassing Japan's since 2023. The Federal Reserve projects that demand for short-term Treasuries from stablecoin issuers could reach roughly $400 billion by the end of 2030, provided current trends continue.