UBS(US:UBS) 智通财经网·2025-07-22 04:20Core Insights - The legislation mandates that stablecoin issuers must maintain 100% reserve backing with high-quality, short-term, and liquid assets [1] - The International Bank for Settlements (BIS) estimates that stablecoins have purchased approximately $40 billion in U.S. short-term government bonds, equating to the largest U.S. government money market fund [4] - U.S. Treasury Secretary Yellen believes that a $2 trillion market cap for dollar stablecoins is reasonable, with potential for upward risk [5] Group 1: Stablecoin Market Dynamics - The demand for stablecoins includes a significant portion of "net new" cash demand, with U.S. government money market fund net assets doubling to $7 trillion since 2019, while stablecoin market cap is around $240 billion [5] - The growth of the stablecoin sector will depend on its international usage [6] - The legislation is expected to further expand the use of the dollar globally through stablecoins [7] Group 2: Impact on Treasury Securities - Strong inflows into dollar stablecoins are linked to a decline in the yield of 3-month short-term government bonds, with effects observed on 10-year Treasury yields approximately 15 days later [8] - UBS previously noted that during the late 1990s, the supply growth of short-term government bonds outpaced traditional investor bases, leading to relatively cheaper rates [8][9]