Stablecoin Market Cap Exceeds $200 Billion Amidst U.S. Treasury Strategy

On Friday, the combined market capitalization of the top five stablecoins surpassed $200 billion, reaching $205 billion according to Glassnode data. This surge occurred as investors sought refuge from the declining values of Bitcoin and Ether. Since the U.S. election, the stablecoin market cap has grown by $40 billion. Market leader Tether (USDT) has maintained a market cap of around $140 billion since December, while USDC, issued by Circle, is nearing $60 billion, marking a $25 billion increase since the election. Treasury Secretary Scott Bessent stated at the Digital Asset Summit on Friday that the U.S. intends to leverage stablecoins to maintain the dollar's dominance as the world's reserve currency. This strategy involves stablecoins holding U.S. debt as reserves, potentially lowering Treasury yields. Tether is already a significant holder of three-month U.S. Treasuries.