BoE official sees stablecoins strengthening dollar demand

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Growing use of dollar-denominated stablecoins could reinforce the US dollar’s global role and increase demand for US Treasurys, according to Bank of England official Carolyn Wilkins.

Speaking at Queen’s University Belfast on Tuesday, Wilkins said stablecoins could make cross-border payments easier and expand access to dollar-linked assets outside the US. Issuers would also need to hold reserves, including Treasury bills, to support their tokens.

Tether and Circle held nearly $150 billion in Treasury bills at the end of 2025 and bought about $33 billion during the year, based on data cited by Wilkins.

She also warned that the relationship could work in reverse. Large-scale stablecoin redemptions could force issuers to sell Treasury bills, potentially adding volatility to stressed markets.