Everbright Securities: The US dollar stablecoin is essentially an extension of US dollar credit, which may exacerbate market risks in the long run.

Odaily News The report from Everbright Securities states that, on one hand, the characteristics of the USD stablecoin help to broaden the functions and use cases of the dollar, consolidating and enhancing the dollar's position in the International Monetary System, prolonging the life of dollar hegemony. On the other hand, the USD stablecoin, by being tied to US Treasury bonds, helps to partially alleviate the debt pressure on the US government. However, the USD stablecoin is essentially an extension of the dollar's credit and does not fundamentally resolve the double deficit issue of the dollar. In the long term, it may actually exacerbate risks: first, the issuance of USD stablecoins is anchored to short-term bonds and does not address the rollover issue of medium- and long-term bonds. Currently, medium- and long-term Treasury bonds account for 70% of the outstanding US national debt; second, the expansion of the USD stablecoin will increase instability in the short-term US Treasury bond market, weakening the macroeconomic policy's control ability. (Zhitong Finance)