Carolyn Wilkins, a member of the Bank of England’s Financial Policy Committee, stated that the expansion of stablecoins could strengthen the global position of the US dollar. Digital assets simplify cross-border settlements and increase demand for US Treasurys held as reserves by issuers.
Data cited by Wilkins shows that Tether and Circle held nearly $150 billion in Treasury bills by the end of 2025. These issuers purchased approximately $33 billion in government debt throughout that year, solidifying their role as major market participants.
Wilkins noted that the stablecoin market currently exceeds $300 billion in circulation. The US dollar maintains a 98% share of the total stablecoin value, providing the currency with a significant first-mover advantage in the digital asset space.
Despite the benefits, the official warned that large-scale redemptions could force issuers to sell Treasury bills, potentially increasing market volatility. This risk highlights the broader economic impact of digital dollars beyond the crypto sector.
While the UK has introduced a regulatory sandbox and finalized rules for stablecoin issuance in June, pound-denominated assets have seen slower adoption. The Bank of England continues to test digital money, including simulations for cross-border trade payments.
