Samuel, Ashwanth, et al. "Will Stablecoins Impact the US Treasury Market?," August 2025, https://www.dci.mit.edu/posts/stablecoins-treasuries
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Publication
Will Stablecoins Impact the US Treasury Market?
Abstract
Stablecoin issuers hold a significant amount of US Treasury securities, which is a conventionally conservative strategy. But even the Treasury markets can be susceptible to strain, and if stablecoins grow large enough, a run could cause these markets to seize. Regulators and policymakers are going to have to face the question of whether stablecoin issuers will have access to the Fed Discount Window, and if not, what if any structural safeguards are needed to protect the US Treasury market?