Home web3.0 As Digital Assets Grow, Treasury Demand Finds Strength in Tokenized Safe Havens

As Digital Assets Grow, Treasury Demand Finds Strength in Tokenized Safe Havens

Nov 01, 2024 pm 12:16 PM
Crypto Tokenization Market Hedging

The U.S. Treasury Department released its Q4 2024 Treasury Borrowing Advisory Committee (TBAC) Quarterly Report on Wednesday, examining how digital assets

As Digital Assets Grow, Treasury Demand Finds Strength in Tokenized Safe Havens

A recent U.S. Treasury report suggests that tokenized assets, such as bitcoin and stablecoins, could drive demand for Treasuries, particularly during periods of downturn in the crypto market.

The Treasury Department's Q4 2024 Treasury Borrowing Advisory Committee (TBAC) Quarterly Report, released Wednesday, examines how digital assets are impacting demand for U.S. Treasury securities and broader market dynamics.

The report specifically investigates how innovations in financial technology could reshape Treasury issuance, especially regarding short-term securities, and how the growth of digital assets could influence liquidity and hedging strategies.

As digital markets continue to expand, the report examines whether institutional investments in bitcoin and other crypto assets could increase demand for Treasuries during periods of market instability.

"To date, growth in digital assets has created marginal incremental demand for short-dated Treasuries," the report states, adding that "This has so far come primarily through increased use and prevalence of stablecoins."

"Institutional adoption of ‘high-beta’ bitcoin and crypto might lead to increased future hedging demand for Treasuries," the report continues, especially during periods of substantial crypto market declines.

"Growth in, and institutionalization of, crypto markets (bitcoin) could create additional hedging and flight-to-quality demand for tokenized Treasuries in periods of heightened downside volatility," the report further states.

However, the report warns that "Flight-to-quality demand can be hard to predict. Hedging demand could be structural, but depends on how well Treasuries continue to hedge downside crypto-volatility."

The report also highlights that "the benefits of tokenization extend far beyond and are independent of native crypto assets like bitcoin."

"Tokenization allows for diverse assets - from financial instruments to real-world assets - to be represented across interoperable ledger systems," the report explains. "By fostering new economic efficiencies and connections, tokenization could enable deeper integration between traditional finance and digital assets."

"If widely adopted, tokenization could reshape market strategies, enhancing agile asset management and potentially driving demand for Treasuries as both a safe-haven asset and a tokenized portfolio component," the report concludes.

The above is the detailed content of As Digital Assets Grow, Treasury Demand Finds Strength in Tokenized Safe Havens. For more information, please follow other related articles on the PHP Chinese website!

Statement of this Website
The content of this article is voluntarily contributed by netizens, and the copyright belongs to the original author. This site does not assume corresponding legal responsibility. If you find any content suspected of plagiarism or infringement, please contact admin@php.cn

Hot Article Tags

Notepad++7.3.1

Notepad++7.3.1

Easy-to-use and free code editor

SublimeText3 Chinese version

SublimeText3 Chinese version

Chinese version, very easy to use

Zend Studio 13.0.1

Zend Studio 13.0.1

Powerful PHP integrated development environment

Dreamweaver CS6

Dreamweaver CS6

Visual web development tools

SublimeText3 Mac version

SublimeText3 Mac version

God-level code editing software (SublimeText3)

The Next Meme Coin Supercycle: Meet XYZVerse (XYZ), the Heavyweight Champion of Sports and Meme Culture The Next Meme Coin Supercycle: Meet XYZVerse (XYZ), the Heavyweight Champion of Sports and Meme Culture Nov 03, 2024 pm 09:36 PM

The Next Meme Coin Supercycle: Meet XYZVerse (XYZ), the Heavyweight Champion of Sports and Meme Culture

Crypto Influencer Cobie Burns 60% of the Supply of a Solana (SOL) Meme Coin Issued via Pump.fun Crypto Influencer Cobie Burns 60% of the Supply of a Solana (SOL) Meme Coin Issued via Pump.fun Nov 09, 2024 am 04:14 AM

Crypto Influencer Cobie Burns 60% of the Supply of a Solana (SOL) Meme Coin Issued via Pump.fun

Robinhood Crypto gets rid of SEC investigation! OKX's company pays $84 million in settlement Robinhood Crypto gets rid of SEC investigation! OKX's company pays $84 million in settlement Mar 04, 2025 am 09:15 AM

Robinhood Crypto gets rid of SEC investigation! OKX's company pays $84 million in settlement

Digital cryptocurrency app trading software top10 (the latest ranking of 2025) Digital cryptocurrency app trading software top10 (the latest ranking of 2025) Mar 17, 2025 pm 05:12 PM

Digital cryptocurrency app trading software top10 (the latest ranking of 2025)

Crypto Bitlord: The Man Who Mastered the Art of Influence in the Ever-Changing World of Cryptocurrency Crypto Bitlord: The Man Who Mastered the Art of Influence in the Ever-Changing World of Cryptocurrency Nov 16, 2024 am 04:34 AM

Crypto Bitlord: The Man Who Mastered the Art of Influence in the Ever-Changing World of Cryptocurrency

Top 10 virtual digital currency trading platforms, ranking of the world's top 10 virtual currency apps Top 10 virtual digital currency trading platforms, ranking of the world's top 10 virtual currency apps Feb 12, 2025 am 06:09 AM

Top 10 virtual digital currency trading platforms, ranking of the world's top 10 virtual currency apps

Top 10 Currency Trading Platforms in Hong Kong Top 10 Exchange Virtual Currency App Platforms Top 10 Currency Trading Platforms in Hong Kong Top 10 Exchange Virtual Currency App Platforms Feb 15, 2025 pm 06:15 PM

Top 10 Currency Trading Platforms in Hong Kong Top 10 Exchange Virtual Currency App Platforms

Binance Presents an Exclusive Promotion: Earn PEPE Token Vouchers and Enjoy Bonus APR Rewards on PEPE Flexible Products Binance Presents an Exclusive Promotion: Earn PEPE Token Vouchers and Enjoy Bonus APR Rewards on PEPE Flexible Products Oct 18, 2024 pm 06:58 PM

Binance Presents an Exclusive Promotion: Earn PEPE Token Vouchers and Enjoy Bonus APR Rewards on PEPE Flexible Products