Stablecoin issuers as a category have grown to become the 18th largest holder of U.S. Treasuries, a milestone that places them alongside major sovereign holders.
According to a new report by Bernstein, the total circulation of stablecoins has reached an all-time high of $170 billion, following a dip in 2023. The report describes the dollar-pegged coins as “systemically important” and notes their role in providing USD savings access to international users, helping to spread digital dollars beyond the U.S.
Amid this growth, competition in the stablecoin and digital asset market continues to heat up, ascrypto custodian BitGo on Wednesday announced its U.S. dollar-pegged stablecoin, USDS, set to launch in January 2025. This follows Coinbase’s introduction of cbBTC, a Bitcoin-pegged asset for its Base layer-2 network.
Coinbase’s move came after BitGo partnered with BiT Global to expand custody operations for Wrapped Bitcoin (WBTC), a…
