Karishma Vanjani
Treasury Secretary Scott Bessent sees the stablecoin market growing to $3 trillion, adding to demand for the nation's debt.
Demand and supply for U.S. debt have been a focal point for Wall Street strategists. The government needs to accommodate for the growing national debt and less money being raised because of corporate tax cuts. The White House insists that tariffs will add to revenue, but that's highly speculative, especially as the fate of some of the administration's tariffs now rests in the hands of the Supreme Court.
Bessent, in prepared remarks at the annual Treasury market conference on Wednesday, said the stablecoin market, which is currently valued around $300 billion, "could grow tenfold by the end of the decade" and add to demand for short-term government debt or Treasury bills. Stablecoin, a type of cryptocurrency, is designed to maintain a stable price relative to another asset such as the U.S. dollar.
The growth is made possible by the GENIUS act, which became law over the summer and encourages the adoption of such cryptocurrency.
Future demand for Treasuries will also come from the $7.5 trillion market for money-market funds, a big investor in Treasury bills, Bessent said. Additional reforms that change how much capital banks must hold against relatively low-risk assets could further add to demand.
"As Treasury watches these trends play out, we will assess whether they are structural or temporary shifts. And we will adjust our long-term issuance plans accordingly," Bessent added.
On Nov. 5, the Treasury said that it has begun to preliminarily consider future increases to the amount of issuance of long-term bonds.
Write to Karishma Vanjani at karishma.vanjani@dowjones.com.
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November 12, 2025 11:28 ET (16:28 GMT)
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