patrick.net

As featured on Breaking Points: Crypto Markets In CHAOS As Bitcoin Plunges.

https://www.visualcapitalist.com/sp/pla02-ranked-the-biggest-buyers-of-u-s-debt/

Stablecoin bought $41 billion over last 12 months of US Treasuries.

The reason stablecoin issuers buy so much debt is because they must back every digital dollar 1:1 with liquid, cash-like assets. That pushes them toward ultra-safe instruments like U.S. Treasury bills, money market funds, and cash.

Both stablecoins and the U.S. Treasury market benefit from their close relationship. Stablecoin issuers rely on U.S. Treasurys to create consumer confidence and grow their user base. Treasurys also offer safe interest payments. On the other side, the U.S. Treasury market stands to gain from new, large-scale buyers to help expand demand.

AD says

the U.S. Treasury market stands to gain from new, large-scale buyers to help expand demand.

Then interest rates should go up.

HeadSet says

AD says

the U.S. Treasury market stands to gain from new, large-scale buyers to help expand demand.

Then interest rates should go up.

No, they should go down.

HeadSet says

AD says

the U.S. Treasury market stands to gain from new, large-scale buyers to help expand demand.

Then interest rates should go up.

No as this is like quantitative easing whereas stablecoin reserves (or banks) buy US Treasuries and keep on balance sheet like the Federal Reserve.

Interest rates do not have to go up on the 10 Year Treasury to attract enough buyers if stablecoin banks are coming in automatically to buy them at least every 3 months.

AD says

Interest rates do not have to go up on the 10 Year Treasury to attract enough buyers if stablecoin banks are coming in automatically to buy them at least every 3 months.

Yup. And the GENIUS Act stable coins haven't even been set up yet.

MolotovCocktail says

MolotovCocktail says

MolotovCocktail says

Exactly as its like when the Federal Reserve came in and bought US Treasuries back around 2008 via quantitative easing.

My guess is Trump promotes stablecoins to finance debt like US Treasury below the 4.5% rate without having to rely on the quantitative easing.

.

https://rudy.substack.com/p/a-simulacrum-of-language

“Paxos, the issuer of PayPal’s PYUSD stablecoin, accidentally minted an astonishing $300 trillion worth of PYUSD tokens on Ethereum at around 3:12 p.m. ET.

“Paxos just minted the entirety of global debt on the Ethereum Blockchain,” said blockchain analytics firm Arkham.

The error happened during an internal transfer due to what appears to be a decimal mistake — Paxos likely intended to mint $300,000 but ended up with $300 trillion because PYUSD has 6 decimals.”

Patrick says

The error happened during an internal transfer due to what appears to be a decimal mistake — Paxos likely intended to mint $300,000 but ended up with $300 trillion because PYUSD has 6 decimals.”

WTF? Are they using long integer values to represent floating point numbers? That statement makes little to no sense.

stereotomy says

WTF? Are they using long integer values to represent floating point numbers?

That would not even save space, as both are 4 bytes. I suppose they are referring to an operator entry error where the clown was punching in zeros he thought were to the right of the decimal point. Still, that shows how easy it is to manipulate whatever one wants.

Every $3.5 billion in stablecoin growth lowers what the government pays to borrow money by 0.025%. At $3 trillion, that saves $114 billion per year. That’s $900 per U.S. household in lower debt costs.

https://x.com/shanaka86/status/1992761547580645441?s=20