Stablecoin Growth Could Reinforce US Dollar Dominance, Says BoE Official

Stablecoin Growth — A Bank of England policy maker has stated that the rise of dollar-denominated stablecoins could strengthen the US dollar’s global position and increase demand for US Treasury debt.

Carolyn Wilkins, a member of the Bank of England’s Financial Policy Committee, made the remarks in a speech at Queen’s University Belfast on Tuesday. She argued that stablecoins could expand access to dollar-linked assets outside the US and make cross-border settlement easier, reinforcing the currency’s dominance.

Wilkins cited data showing that major stablecoin issuers Tether and Circle held nearly $150 billion in Treasury bills at the end of 2025 and purchased roughly $33 billion during the year. She noted that the stablecoin market, now exceeding $300 billion in circulation, is 98% tied to the US dollar, giving it a “considerable first-mover advantage.”

However, she also warned of potential risks, stating that mass redemptions at sufficient scale could force issuers to sell Treasury holdings, potentially amplifying volatility in stressed markets. Her comments come as UK regulators take steps to encourage the development of pound-denominated stablecoins, which have seen slower adoption.