Stablecoins Could Strengthen Dollar Dominance and Boost U.S. Treasury Demand, Bank of England Official Says

Stablecoins could strengthen the dollar's international position and boost demand for U.S. Treasury securities, according to a Bank of England official cited by The Daily. Randy Kroszner, a member of the Bank of England's Monetary Policy Committee and Financial Markets Infrastructure Committee, stated in a December 2025 speech that stablecoin issuers are already influencing short-term yields in the U.S. Treasury market. He also warned that during periods of market instability, this influence could expand to longer-maturity Treasuries.