Asia Market Snapshot: Stablecoins—Global Dollar Catalyst or Potential 2008-Style Shock?

While markets focus on Jerome Powell’s rate guidance, stablecoins are quietly becoming a key factor in Treasury liquidity, raising questions about whether they stabilize or stress the broader financial system.

The stablecoin sector has nearly doubled to $280 billion over the past year, with most issuers holding short-term Treasuries as collateral. OKX Singapore CEO Gracie Lin notes that this ties crypto liquidity more closely to Federal Reserve policy than ever before.

“Stablecoins are delivering stronger long-term price signals,” Lin told CoinDesk. “The next step is market unification — the rails exist, now a unified system could bring liquidity, efficiency, and real utility for investors.”

Coinbase analysts estimate the market could reach $1.2 trillion by 2028, potentially requiring $5.3 billion in weekly Treasury purchases. While inflows may slightly reduce yields, redemption surges could force Treasury sales, draining liquidity.

The debate continues: Barry Eichengreen warns of a 2008-style liquidity crunch, whereas former U.S. Comptroller Brian Brooks argues Treasury-backed stablecoins provide systemic safety. Coinbase models suggest stablecoins are shaving basis points off yields, underscoring their growing influence on global markets.

Market Snapshot

• BTC: Trading above $111,300, consolidating amid macro caution.
• ETH: $4,320, up 0.6%, reflecting renewed altcoin interest.
• Gold: Exceeds $3,540 an ounce, reaching record highs amid Fed rate cut expectations and geopolitical uncertainty.
• Nikkei 225: Steady, supported by foreign inflows and Japan-focused capital trends.