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Stablecoin issuers’ short-term debt use offsets China’s longer-dated dip

A San Francisco Fed study says the net effect hinges on whether stablecoins are bought by different market participants.

Reported · Written up by our desk · Stablecoins

A San Francisco Fed study cited by The Defiant found that stablecoin issuers tend to favor short-term debt instruments.

The study also found that China’s retreat is largely concentrated in longer-dated securities.

According to The Defiant’s summary of the research, the amount of additional demand for these instruments depends on who ultimately buys stablecoins.

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