stablecoin outflows proxy T-bill sales or reduced rolling redemption/burn requires the stablecoin issuer to sell NOW, so large volumes means dealers/market makers will require a yield concession to warehouse those T-bills, as they are subject to balance sheet constraints

Illya Gerasymchuk 2025-08-17 15:34

this is because a stablecoin mint/creation on-chain is the proxy for a T-bill purchase by the company issuing that stablecoin (e.g. Circle, Tether) so stablecoin inflows proxy T-bill purchases, which raises their price and lowers the yield