Stablecoins: USDC, USDT, and the crypto dollar system
Stablecoins are more interesting than they seem. These articles dive into Tether, Circle, how issuers manage reserves, depegging risks, and why stablecoin flows actually move Treasury yields.
central banks have rejected holding Bitcoin in their reserves including Fed, ECB, PBoC and many others
stablecoin inflows lower 3M Treasury bill yields, while outflows raise yields by a larger amount
now imagine when credit institutions can tokenize new credit and allow automated stablecoin issuance backed by that credit