FILE PHOTO: Representations of cryptocurrencies are seen in front of displayed stock graph in this illustration taken November 10, 2022. REUTERS/Dado Ruvic/Illustration/File Photo
BOSTON (Reuters) -The potential for stablecoins to fuel demand for short-term U.S. Treasury securities was a hot topic at a money market fund conference in Boston this week, with investors expecting these digital tokens to absorb a huge supply of government debt later this year.
Stablecoins are pegged to highly liquid assets such as the U.S. dollar and the tokens can drive demand for U.S. Treasuries by requiring issuers to hold large, liquid, and safe reserves to support a 1:1 peg to the greenback.
