Bonds
Bond-Market Pros Are Unimpressed With Baby Whales From Crypto
- Many experts are skeptical stablecoins matter in T-Bill market
- ‘Of course it’s hype,’ says former Fed official Gagnon
Stablecoins are far from major whales in US debt markets, accounting for only about 1% of all Treasury bill purchases.
Photographer: Nelson Almeida/AFP/Getty ImagesThis article is for subscribers only.
They are turning into the strangest of bedfellows in the financial world: The famously safe securities issued by the US Treasury and the notoriously not-so-safe world of cryptocurrencies.
Issuers of crypto stablecoins meant to track the dollar one-for-one have become noticeable players in the Treasury market as they seek the safest and most-liquid assets to back the value of their tokens.