Treasury Secretary Besant believes that the stablecoin industry is key to financing the U.S. government's debt.

The finance minister expects the digital token market to rise 20 times as Washington faces borrowing challenges.

According to a report by the Financial Times on Wednesday, U.S. Treasury Secretary Scott Bessenet has positioned the stablecoin industry as a potential solution to the country's rising debt financing needs, and expects that digital currency issuers may become major buyers of government securities.

The Treasury Secretary has been discussing the U.S. Treasury bonds held by major stablecoin companies, including Tether and Circle, and believes that this sector is a growing source of demand for short-term government bonds. These conversations have influenced the Treasury's strategy to focus on issuing short-term bonds rather than long-term bonds.

Stablecoins maintain their peg to the US dollar by holding reserves of safe assets such as US Treasury bonds, representing a market worth $250 billion, which Bessent expects to expand to $2 trillion. Under Trump's fiscal policies, the US is facing record levels of debt and an accelerating deficit, and this growth could provide meaningful support for government borrowing.

This approach has gained the support of regulators through the "Stablecoin Act" (GENIUS Act) introduced in July this year, which stipulates that stablecoins must be backed by ultra-liquid assets, including U.S. Treasury securities. This establishes a direct link between the expanding digital currency market and the demand for government debt.

According to the Financial Times of the UK, Jay Barry, a global interest rate strategist at JPMorgan, stated that the Treasury views stablecoins as "a true source of new demand," which demonstrates that the department's focus on short-term debt issuance is justified.

Bessent's strategy represents the latest initiative to integrate cryptocurrency into the core financial infrastructure of the United States while addressing real financing challenges. With the rise of digital currencies, stablecoin issuers are becoming important players in the U.S. Treasury market, with companies like Tether already holding billions of dollars in government bonds.

The U.S. Treasury Department acknowledges that it is monitoring the development of stablecoins under the new regulatory framework and notes the potential for an "increase in demand for short-term government bonds."

At the time this measure was introduced, Besant had strengthened the Ministry of Finance's market participation and more frequently informed financial institutions about the debt market conditions and financing issues.