Why Stablecoins Could Create Massive Demand for U.S. Treasuries Please ❤️like, bookmark🔖, and 🔁share with fellow investors In this Short video, @TheMichaelEvery and @AdamTaggart discuss why stablecoins could become much more than a crypto or payments innovation — they could become a powerful tool of U.S. economic statecraft, creating structural global demand for dollars and U.S. Treasuries while potentially helping lower domestic borrowing costs. * Imagine trillions of dollars of global capital flowing into dollar-backed stablecoins whose reserves are held primarily in T-bills. Stablecoin issuers would need to acquire those Treasuries, creating an enormous new source of demand. More demand for T-bills means higher prices and, all else equal, lower yields. * But the bigger idea goes beyond Treasury rates. If dollar stablecoins become increasingly important outside the U.S., America could theoretically create two different dollar environments: strong international demand for dollar-backed assets while maintaining lower financing costs domestically. The U.S. could reinforce that demand by encouraging stablecoins to become a settlement mechanism for international trade. * Imports could increasingly be paid for with dollar stablecoins, while major commodity exporters could potentially be encouraged to accept them for energy. In that scenario, the traditional “petrodollar” begins evolving into a “petro-stablecoin.” Countries and companies that need energy would also need access to dollar stablecoins, creating another source of structural demand for dollar-denominated assets. * The balance-sheet implications are particularly interesting. If a stablecoin issuer holds a U.S. Treasury bill domestically and issues a digital token against it, a foreign exporter can receive that token while the underlying Treasury asset remains inside the U.S.-centered financial system. The foreign holder receives a dollar-denominated claim, but the reserve backing that claim remains anchored in U.S. government debt. * And expanding stablecoin supply does not automatically create additional U.S. government liabilities. The Treasury liability already exists when the T-bill is issued. The stablecoin issuer simply purchases that security and issues digital tokens backed by it. That creates a potentially powerful flywheel: global stablecoin demand → stablecoin issuance → T-bill purchases → greater Treasury demand → potentially lower U.S. funding costs → deeper global dollar adoption. * That’s why the stablecoin story may ultimately have far less to do with crypto speculation than with the future architecture of the global dollar system. If dollar stablecoins become a major settlement layer for global trade, commodities and payments, they could simultaneously extend dollar dominance and create massive new demand for U.S. government debt. The petrodollar may not disappear. It may simply be going digital. #stablecoins# #USdollar# #Treasuries# #yields# 💡 Get access to my notes with the key takeaways from this interview with @TheMichaelEvery by visiting my Substack (link below)⬇️