The impending low interest rate environment, as the Federal Reserve is expected to cut rates, may curtail demand for tokenized Treasuries. However, stablecoins could help cushion the negative impact on Treasury and money market tokens. According to Alexander Deschatres of Standard Chartered, the $170 billion stablecoin supply could provide a cushion from the negative impact of rate cuts. The market for tokenized Treasuries has surged to over $2 billion, with BlackRock's USD Institutional Digital Liquidity Fund attracting over $500 million in inflows.



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