The US Treasury Secretary believes that stablecoins can boost the demand for US bonds.

The Financial Times reported, citing sources, that U.S. Treasury Secretary Steven Mnuchin signaled to Wall Street that he expects stablecoins to become a source of demand for U.S. government bonds. Mnuchin has consulted with stablecoin issuers such as Tether and Circle, and discussions have also included plans to increase the issuance of short-term notes by the Treasury Department in the coming quarters. The U.S. Treasury Department stated that the issuance plans will continue to consider various opinions, including those from investors, primary dealers, and the Treasury Borrowing Advisory Committee.