Now some fun reading for the weekend!
Stablecoins To The Treasury’s Rescue
Digital Money was the title of TBAC’s April 30, 2025, presentation to the U.S. Treasury Department, and an important topic worth discussing. TBAC, short for the Treasury Borrowing Advisory Committee, is comprised of senior investment professionals from the largest banks, brokers, hedge funds, and insurance companies. Most often, the committee informs the Treasury staff on market conditions and makes recommendations on debt issuance. The group’s recommendations typically carry significant weight with the Treasury. At its most recent meeting, the TBAC discussed digital money, better known as stablecoins, as a “new payment mechanism” that can benefit the Treasury by generating “materially heightened demand” for Treasury bills.
Given that digital money is now a reality and the TBAC is advising the Treasury Department on it, it’s worth summarizing the TBAC report and discussing how it may impact the Treasury bond market and change the financial system.
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