> You may not receive any interest on your stablecoin balance, but the issuer certainly does

A bunch of zero marginal cost capital funding purchases of U.S. debt would absolutely push down rates, possibly lower than inflation, because if you’re a stablecoin issuer you’re not constrained by yield.

This is a dumb-money venture. And if there is this much money that is this dumb, Treasuries aren’t the worst place for it to go.

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cortesoft a day ago | parent | next [-]

Even if every dollar of market cap for every crypto currency in the world was invested into us treasuries, it would still be a drop in the bucket and wouldn't drastically change rates.

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NoahZuniga a day ago | parent | prev | next [-]

All those trilions and trilions of dollars of stablecoins sure are bringing down the us' cost to borrow.

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JumpCrisscross a day ago | parent [-]

> those trilions and trilions of dollars of stablecoins sure are bringing down the us' cost to borrow

If you think trillions of dollars in de novo price-insensitive demand doesn’t move a market, even one as deep as the Treasury market, I’ve got a stablecoin to sell you.

	▲	NoahZuniga a day ago \| parent [-]
		Yes, trillions of dollars of new price-insensitive demand would move the treasury market. That's why I named that number! But, there just isn't that much value in stablecoins.

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ac29 a day ago | parent | prev [-]

>A bunch of zero marginal cost capital funding purchases of U.S. debt would absolutely push down rates

There is a floor to short term treasury rates because the Fed also runs overnight repo operations linked to the Fed funds rate