Hagerty: Stablecoins to Become Top U.S. Treasury Holders by 2030

Senator Bill Hagerty has made a bold prediction about the future of stablecoins, saying they are on track to become the largest holders of U.S. treasuries by 2030. Referring to a projection from Citibank, Hagerty pointed out the rising influence of stablecoin issuers in traditional financial markets.

Hagerty also took time to clarify the difference between stablecoins and more volatile cryptocurrencies like Bitcoin. “This is a payment mechanism, and not to be confused with Bitcoin or something that has a speculative component,” he said. 

Unlike cryptocurrencies driven by market speculation, stablecoins are designed to maintain value and are usually backed by secure assets.

“This puts us into a digital payment framework,” Hagerty added, highlighting the speed and efficiency of stablecoin transactions compared to legacy systems. “It’s much better than the system developed in the seventies and eighties, which is slow. It takes days to clear.”

He emphasized that stablecoins would be backed by “high quality, short-term assets,” such as short-term U.S. treasuries or cash. “The majority of it will be U.S. treasuries,” he said.

If the trend continues, stablecoin issuers could soon hold more U.S. treasuries than any foreign government or institutional investor, signaling a major shift in global financial power.

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