Stablecoin Market Reaches $280 Billion Amid Fed Policy Impact

Market Overview

Stablecoins have surged to $280 billion, nearly doubling in a year. Most issuers hold short-term Treasuries as collateral, linking crypto liquidity closely to Federal Reserve policy. Key insights include:

Jerome Powell's rate signals are being overshadowed by developments in stablecoins.
Gracie Lin from OKX Singapore highlights long-term price signals in stablecoins.
Coinbase analysts project the stablecoin market could reach $1.2 trillion by 2028, requiring weekly Treasury purchases of $5.3 billion.
Concerns raised about potential liquidity issues reminiscent of the 2008 money-market fund panic.
The new GENIUS Act mandates one-to-one Treasury backing for stablecoins, aiming for more secure issuance.
Debate continues on whether stablecoins will stabilize or destabilize markets.

Current Market Movements

BTC: Trading above $111,300, showing consolidation amid macro uncertainty.

ETH: Trading at $4,320, with a modest intraday increase of 0.6% reflecting renewed investor interest.

Gold: Surged past $3,540 per ounce, reaching an all-time high due to expectations of a Fed rate cut and political pressures.

Nikkei 225: Steady within its range, benefiting from strong foreign inflows and positive reforms in Japan.

Elsewhere in Crypto

Yunfeng Financial, linked to Jack Ma, plans to build an Ether treasury starting with a $44 million ETH purchase.
Executives from Jito assess the SEC’s decision on liquid staking.
The Ethereum Foundation is set to sell another 10,000 ETH following a deal with SharpLink.