Chi Protocol | USC

Stablecoin is the most important crypto sector of this decade. Not DeFi, RWA or AI but stablecoins will see the highest growth by 2030. And what's the reason behind it? Because the US government wants to adopt and promote stablecoin. Even before the Strategic Bitcoin Reserve, the US government wanted a stablecoin regulation. But how will the US benefit from stablecoins? The majority of stablecoin issuers hold T-bills. T-bills are the US government debt, which means if stablecoin MCap grows, the demand for US government debt will go up. So far, Japan and China have held the most US government debt, but due to the trade war, they're slowly dumping T-bills. If the US government promotes stablecoins, it'll automatically push for more stablecoin demand and will push stablecoin issuers to hold more T-bills. Overall, this'll bring yields down as demand for bonds will go up. This will help the US government to refinance their debt cheaply and will also help reduce their interest payments. TLDR: The US will adopt #stablecoins. Stablecoin supply will go up Issuers will buy more T-bills to back their stablecoins. Bond demand will go up, and yields will go down. The US government will refinance their debt cheaply, and their expenses will go down, which will help them to spend more money.

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1/ Stablecoins are reshaping finance 🏦 Explore all insights, market trends, asset deep dives, and more in "The State of Stablecoins 2025"— a comprehensive report by Dune & @artemis Link at the end of the thread 🧵