---
title: "Stablecoins Drive Demand for Short-Duration U.S. Treasuries"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/287209475.md"
description: "Stablecoins are increasingly supporting demand for short-duration U.S. Treasuries, reinforcing the U.S. Treasury's shift toward T-bill financing, according to BeInCrypto. With stablecoin reserves confined to short-term assets, they cannot absorb the risk of longer-term Treasuries, leaving a demand gap for 10-year and 30-year bonds. The Treasury's focus on T-bills reduces long-end supply pressure but increases front-end rollover risk, which stablecoins help absorb. However, compressing long-term yields requires foreign institutional buyers to return, as stablecoins alone cannot address the long-end demand."
datetime: "2026-05-21T11:10:14.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/287209475.md)
  - [en](https://longbridge.com/en/news/287209475.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/287209475.md)
---

# Stablecoins Drive Demand for Short-Duration U.S. Treasuries

Stablecoins are increasingly supporting demand for short-duration U.S. Treasuries, reinforcing the U.S. Treasury's shift toward T-bill financing, according to BeInCrypto. With stablecoin reserves confined to short-term assets, they cannot absorb the risk of longer-term Treasuries, leaving a demand gap for 10-year and 30-year bonds. The Treasury's focus on T-bills reduces long-end supply pressure but increases front-end rollover risk, which stablecoins help absorb. However, compressing long-term yields requires foreign institutional buyers to return, as stablecoins alone cannot address the long-end demand.

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