Stablecoins are becoming an innovative force in the field of cross-border micro-payments, with their adoption rate continuously rising in banking and commercial sectors. This trend is driving a sharp increase in the demand for allocations in short-term U.S. Treasury securities.

According to an analysis by Bank of America, stablecoins could generate an additional demand for U.S. Treasury bonds of approximately $25 billion to $75 billion over the next year. At the same time, the U.S. Treasury Secretary is actively communicating with stablecoin issuers, hoping that they can become significant buyers of U.S. Treasury bonds.

This development is expected to not only improve the marginal demand for U.S. Treasury bonds but also allow cryptocurrencies to become more deeply integrated into the core of the financial system. As this trend unfolds, a new positive interaction may develop between policymakers and market participants.

This emerging connection not only reflects the power of financial innovation but also indicates the increasingly close relationship between traditional finance and digital assets. As the application of stablecoins in the payment sector continues to expand, its impact on the macro economy and financial markets will become increasingly significant.

However, this trend has also raised a series of questions: How to strike a balance between innovation and regulation? What is the impact of stablecoins on traditional monetary policy? These issues need to be explored and resolved jointly by policymakers, market participants, and researchers.

Overall, the emerging connection between stablecoins and U.S. Treasury bonds signifies that the financial system is undergoing a significant transformation, which could have far-reaching effects on the global financial landscape.