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Fred Ehrsam
@fehrsam
Will stablecoins become the world's largest owners of US Treasuries? 💵 It seems possible that crypto stablecoins become the largest holders of US Treasuries in the world. Putting up $1000 for the one layer deeper analysis to support or debunk that thesis. @bountybot
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Fred Ehrsam
@fehrsam
Thesis: - Stablecoins $150bn market cap - Probably mostly held in Treasuries - ~#16 on list of US Treasury holders today - Largest holders today: Japan $1.1tn, China $770bn (and declining) - Stablecoins will 10x in market cap in ~10 yrs - This could make stablecoin issuers one of largest global holders of Treasuries
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Fred Ehrsam
@fehrsam
…all with the backdrop of foreign appetite for US Treasuries declining and a Treasury auction that almost failed last year. If true, not only are stablecoins spreading the dollar, they would be a critical “sink” for Treasuries.
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Fred Ehrsam
@fehrsam
Items for the analysis: - Confirming at whatever level of detail possible the amount of stablecoin reserves held in US Treasuries today - Confirming the largest holders of Treasuries in world today and projected in 10 years - Any other relevant thoughts or datapoints
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