US Debt Interest Hits $1T: The Hidden Catalyst for Stablecoin Adoption

US federal interest payments on national debt exceeded $1 trillion for the first time in fiscal year 2025, surpassing both defense spending and Medicare, marking a historical fiscal shift. This situation, which analysts compare to "Weimar" due to the risk of a debt spiral, has led the US Treasury to view stablecoins as a strategic solution. The GENIUS Act, signed in July 2025, mandates that stablecoin issuers hold 100% reserves in US dollars or short-term Treasury bills, effectively turning them into major buyers of government debt. Treasury Secretary Scott Bessent touted this as a revolution that will surge demand for Treasuries, with Standard Chartered estimating stablecoin issuers could buy $1.6 trillion in T-bills over four years, potentially replacing foreign central bank purchases. While the immediate effect is market liquidity absorption, the long-term implication is that this fiscal instability paradoxically strengthens the case for assets outside the traditional system, positioning stablecoins as critical infrastructure for US debt management.

(Source：BeInCrypto)