Most U.S. stablecoin issuers back their tokens with U.S. dollars or Treasury securities, meaning those reserves are held within the domestic financial system.
Stablecoin News
Patrick Witt, executive director of the White House Council of Advisors for Digital Assets, pushed back Wednesday against concerns that stablecoin yields will pull deposits out of U.S. banks, arguing the opposite is true.
Witt said in a post on X that when foreign users exchange local currency for stablecoins issued by U.S.-based companies, the capital flowing in is net new to the American banking system. Most U.S. stablecoin issuers back their tokens with U.S. dollars or Treasury securities, meaning those reserves are held within the domestic financial system.
The…
