Bank of America (BAC) The Rate strategy team said that the US Treasury market. It is increasingly molded by two emerging forces: the stablecoin demand for T invoices and the token of assets related to government debt.
Bofa sees Stablcoins as a game change for treasure bonds than for mutual funds in the money market (Mmfs)Where its highest performance represents a competitive challenge, said the Wall Street bank in a report on Monday.
Bank analysts expect the demand for Treasury of Stablecoin to gradually grow, in order of $ 25 billion to $ 75 billion in the next 12 months, but not enough to significantly change the dynamics of the bill.
The stable are cryptocurrencies whose value is linked to another asset, such as the US dollar or gold. They play an important role in cryptocurrency markets, providing, among other things, a payment infrastructure, and are also used to transfer money internationally.
According to Bofa, some MMF clients show a greater interest in tokenization, seeing it as a defensive movement against Stablecoins.
The report said in July, Bny Mellon (BK)Next to Goldman Sachs (GS)implemented blockchain -based technology to keep property records in selected MMF actions.
The effort, stimulated in part for the growth of Stablecoin and the Genius Law, marked the first reinvestment of the MMF tokenized actions.
With stablcoins currently restricted to pay the performance, monetary market funds see a narrow window to tokenize and offer competitive rates before regulatory changes or solutions are erased that advantage, the report added.
Read more: Stablecoin’s supply grows up to $ 75b after the approval of the genius law, says Bofa
