BloFin Research: The Surging U.S. Treasury Yield: Can Stablecoins Help?

Stablecoin growth creates a durable, expanding bid for short-duration Treasuries, reinforcing the U.S. Treasury’s deliberate shift toward T-bill financing. Redemption requirements confine stablecoins to the short end, the long-end demand gap remains dependent on the return of foreign institutional buyers.

• Stablecoins create a bid for short-duration Treasuries but cannot absorb 10Y or 30Y…