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The U.S. Department of the Treasury convened to examine the influence of tokenization and stablecoins on the increasing interest in short-term T-bills, along with the possibility of establishing a government blockchain network.
The U.S. Department of the Treasury’s website released the minutes from the Borrowing Advisory Committee meeting held on October 29, 2024. During the session, officials highlighted the potential advantages of implementing stablecoins and tokenizing Treasury bills.
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Participants in the committee asserted that stablecoins would enhance the demand for U.S. T-bills, as a considerable portion of their collateral is comprised of short-dated Treasury securities issued by the Treasury.
While there are certain risks to financial stability, the tokenization of T-bills could facilitate improvements in operations and foster innovation within the T-bill market. One committee member even proposed the establishment of a regulated permissioned blockchain for the tokenization of Treasury securities, which would be overseen by a government authority.
The tokenization of U.S. T-bills by private entities is gaining momentum in 2024. In early August, it was reported that OpenEden plans to issue tokenized securities on the XRP Ledger. Later that month, Franklin Templeton launched tokenized U.S. Treasuries utilizing the L2 protocol Arbitrum within the Ethereum ecosystem.
The message Stablecoins and Tokenization Drive Demand for U.S. T-Bills first appeared on CoinsPaid Media.
