Bank of America: Stablecoin's disruptive application in cross-border P2P payments may generate demand for up to $75 billion in US bonds annually.

The latest research report from Bank of America provides a deep analysis of the potential transformative power of stablecoins in the financial system. It points out that while this digital asset faces regulatory controversies, it has already demonstrated unique advantages in areas such as cross-border transactions and retail settlements. The report explicitly states that cross-border person-to-person payments are the most disruptive application scenario for stablecoins compared to traditional banking systems, their settlement efficiency and cost advantages are significant, potentially becoming an important channel for capital flows in emerging markets. It is worth noting that Shopify's decision to allow merchants to accept USDC stablecoins is seen as a landmark event in retail penetration, and the recent completion of on-chain repurchase transactions for UST tokenized bonds further highlights institutional investors' recognition of the settlement function of stablecoins. In terms of market demand, Bank of America estimates that the potential demand for stablecoins for US government bonds in the next 12 months could reach $25 billion to $75 billion, but in the short term, it is not enough to reverse the supply-demand pattern in the government bond market.