Asia Morning Briefing: Are stablecoins an ‘engine of global dollar demand’ or a 2008-style ‘liquidity crunch’?

The stablecoin market’s growth to 280 billion USD highlights its direct link to Federal Reserve policies. Gracie Lin emphasizes the need for a unified market to enhance liquidity. Coinbase forecasts it could reach 1.2 trillion USD by 2028, which may affect Treasury yields.

Concerns are raised about stablecoins causing a liquidity crisis similar to 2008. Former Comptroller Brian Brooks advocates for one-to-one Treasury backing of stablecoins as a safeguard, reflecting the ongoing debate around safety and regulation in the evolving market.

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