US Senator’s Prediction: Stablecoins Will Dominate US Treasury Bonds by 2030

Updated

May 21, 2025

Gambar US Senator’s Prediction: Stablecoins Will Dominate US Treasury Bonds by 2030

Jakarta, Pintu News – United States Senator Bill Hagert sparked a heated discussion in the world of finance and cryptocurrencies with his bold prediction: stablecoins are expected to become the largest holder of U.S. Treasury debt by 2030.

Citing projections from Citibank, Hagerty highlighted the large role stablecoin issuers could play in shifting the dominance of foreign institutional and sovereign investors in the US bond market.

In a statement, he differentiated stablecoins from speculative cryptocurrencies such as Bitcoin , and emphasized its role as an efficient digital payment tool.

Stablecoins Are Not Bitcoin: More Stable, More Useful

Senator Hagerty emphasized that stablecoins should not be confused with speculative crypto assets like Bitcoin (BTC). Stablecoins are designed to maintain a fixed value and are usually backed by a stable asset, such as cash or short-term government bonds.

In other words, stablecoins are more like digital payment instruments than high-risk investment vehicles. This makes stablecoins much more suitable for use in modern payment systems.

Hagerty mentioned that the role of stablecoins as a digital payment tool places them within the framework of the future financial system. According to him, current payment technologies developed since the 70s and 80s are outdated-slow and take up to several days to complete a transaction.

Will become the largest holder of U.S. Treasuries?

One of Hagerty’s most astonishing assertions is that most of the stablecoin’s asset backing will come from short-term U.S. government bonds. “The majority of those reserves will be U.S. Treasuries,” Hagerty said. This means that demand for Treasuries could increase dramatically if stablecoin issuers continue to grow.

If this trend continues, issuers of stablecoins like USDC or USDT may surpass holdings of US Treasury securities from foreign countries like Japan or China. This would be a major shift in the global economic power structure.

With such great control over the U.S. Treasury, stablecoin issuers will have direct influence over the U.S. financial markets. This shows that cryptocurrencies, especially stablecoins, are no longer just tools of speculation, but serious players in the global financial order.

Also read: Sean Neville’s New Startup, Catena Labs, Raises $18 Million to Build the AI Bank of the Future!

Big Implications for the Crypto World and Traditional Finance

Hagerty’s prediction is an eye-opener for many that stablecoins will be a key link between crypto and the traditional financial world. For regulators and policymakers, this is a signal that careful regulation of stablecoins is urgently required. Since stablecoins carry billions of dollars in value in the form of sovereign bonds, their stability will be critical to macroeconomic resilience.

On the other hand, for crypto players, the increasingly central role of stablecoins opens up huge opportunities for mass adoption. Projects like Tether and USD Coin are becoming increasingly relevant, not just as hedging vehicles, but also as the foundation of global payment infrastructure.

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