In a recent report, the US Department of the Treasury provided information on the significant growth in key areas of the crypto ecosystem, emphasizing how this growth has contributed to the demand for short-term Treasury bills (T-Bills), which are considered safe investments backed by the US. government debt.
$120 Billion in Stablecoin Collateral Tied to the US Treasury
Treasurer report he argues that digital goods, while still emerging from a small base, have seen rapid growth. This expansion includes native cryptocurrencies such as Bitcoin and Ethereum, as well as stablecoins.
However, the department notes that despite the increase in market activity, domestic and industrial adoption of cryptocurrencies remains limited, especially for investment purposes.
Notably, the report says digital assets market cap it remains low compared to other financial and real assets. This growth did not seem to affect the demand for the Treasury, which shows that crypto assets have not yet been able to “cannibalize” traditional safe investments.
The report highlights two main tracks of interest in digital assets. First, Bitcoin is increasingly viewed as a store of value, often referred to as “digital gold,” in a decentralized finance (DeFi) context.
Second, the report states that speculation has played a major role in the growth of various digital tokens including stablecoins, as they have quickly gained traction, attracting investors looking for assets with stable characteristics, such as money.
The US Treasury Department also asserted that stablecoins they are already part of the digital asset markets, more than 80% of all crypto payments include stablecoin.
The report estimates that nearly $120 billion in stablecoin securities have been invested directly in the Treasury, demonstrating the strong connection between cryptocurrency and traditional financial sectors.
Tokenization Emerges as a Game Changer in Finance
Tokenization – the process of digitally representing assets on the blockchain – is also being identified as a transformative force in finance, especially with the growth and acquisitions seen last year, with asset managers such as BlackRock investing in the sector with Ethereum. blockchain.
The report outlines several benefits of tokenization for the US Treasury, including: improved clarity and settlement, improved transparency, increased accessibility, liquidity and innovation.
Although the potential benefits of making tokens There are many, the Treasury report emphasizes the need to act with caution. The ministry explains that current risks to financial stability remain low, given the small size of the tokenized asset market.
However, the report says that the rapid growth and acquisitions in the token sector could trigger “instability” if not managed properly.
Finally, the report needs an integrated book or highly interactive systems to simplify transactions and reducing inefficiencies. It also highlights the importance of a central authority, such as the central bank of the token sector, in terms of regulatory compliance.
At the time of writing, the largest cryptocurrency in the market was trading at $72,790.
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