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Stablecoin Legislation Will Juice Demand for Treasurys—to a Point - WSJ

1. Senate passed stablecoin legislation, boosting Treasury demand from payment providers. 2. Stablecoins pegged to the dollar drive adoption by companies like Mastercard and Amazon. 3. Increase in Treasury demand could lower government borrowing costs and debt levels. 4. Stablecoin issuers might hold up to $1.6 trillion in T-bills in two years. 5. Analysts uncertain about the overall impact of stablecoin growth on demand.

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FAQ

Why Bullish?

Increased demand for Treasurys from stablecoins can benefit companies like MA. Historical examples include payment systems that thrive amid evolving financial regulations, enhancing company prospects.

How important is it?

Legislation directly endorses digital currencies, impacting transaction dynamics for MA significantly. Higher adoption correlates with increased transaction volume and revenue potential for MA.

Why Long Term?

The growth of the stablecoin market is expected over the next few years. Long-term adoption can stabilize liquidity and enhance market positioning for Mastercard.

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