Treasury Flags Stablecoins as ‘Catalyst’ for Shift in US Financial System

The U.S. Department of the Treasury this past week released a new report exploring the rapid growth of stablecoins and their potential impact on traditional banking. Titled “Digital Money,” the April 30 report noted that the stablecoin sector currently boasts a total market capitalization of around $240 billion — a 2% increase in April alone — with projections suggesting it could surge to $2 trillion by 2028. The report addresses the effects of yield-bearing stablecoins in particular, and how they could impact traditional U.S. financial institutions, from the perspective of Treasury demand and U.S. dollar hegemony. The report also considers the impact of tokenized money market funds (MMFs). To continue reading this as well as other DeFi and Web3 news, visit us at thedefiant.io

Source: The Defiant