When it comes to hoovering up US government debt, you normally look at nation states — China, Japan, the UK — and major corporations such as Warren Buffett’s Berkshire Hathaway.
They tend to be the entities that park billions in the ultra-low risk bonds issued by Washington.
But now there’s a new entrant in the field that is poised to leapfrog them all — crypto industry’s stablecoin issuers.
In a report released this month, Citigroup estimates that Tether, Circle, and other issuers of dollar-pegged cryptocurrencies may hold $1.2 trillion in US Treasuries in their reserves by 2030.
The analysts took note of a raft of developments that are transforming the stablecoin market from a sleepy corner of the crypto field into a world-dominating dynamo.
At the top of the list are mounting hopes that Congress will pass landmark legislation laying out a framework for stablecoins.
If…
