US Treasury Releases Digital Asset Report Highlighting Rapid Growth

According to Foresight News, the U.S. Treasury Department has released a report on digital assets, noting a rapid increase in the overall scale of digital assets from relatively low levels. The report highlights that stablecoins are involved in 80% of cryptocurrency transactions, which has subsequently driven demand for short-term U.S. Treasury bonds. Despite this growth, the overall market for digital assets remains relatively small compared to traditional financial assets such as stocks or bonds. The report also indicates that institutional trading of cryptocurrencies may lead to an increased demand for hedging with short-term Treasury bonds in the future. It emphasizes the need for careful consideration of operational, legal, and technical risks when making design choices around technological infrastructure and tokenization.