Delphi Digital reports global demand shifting from U.S. Treasuries to stablecoins as households seek protection from weakening local currencies.
DeFi & Yields ·
Demand for U.S. dollars is shifting away from Treasury securities and toward stablecoins, according to research from Delphi Digital. Households and businesses in countries experiencing currency depreciation are increasingly holding stablecoins to preserve savings in dollars, rather than routing demand through traditional Treasury channels. The transition reflects structural changes in how dollar-denominated value flows globally, as geopolitical events demonstrated the risks of holding reserves in foreign institutions.
The mechanics reflect a divergence between sovereign and private dollar demand. While governments have reduced Treasury allocations in recent years, individual actors continue seeking dollar exposure for stability. Stablecoins provide a mechanism for this demand to be met without requiring access to U.S. banking infrastructure, enabling adoption across developing economies where such access may be limited or costly.
The research does not specify the scale of this shift, the rate at which it is occurring, or which stablecoins are capturing the most demand. It remains unclear whether this trend is concentrated in particular regions or asset classes, or how significantly it will reshape global capital flows over time.