Latest news with #Yie-HsinHung
The Star
12 hours ago
- Business
- The Star
US Treasuries face stablecoin-driven demand surge as supply looms
BOSTON (Reuters) -The potential for stablecoins to fuel demand for short-term U.S. Treasury securities was a hot topic at a money market fund conference in Boston this week, with investors expecting these digital tokens to absorb a huge supply of government debt later this year. Stablecoins are pegged to highly liquid assets such as the U.S. dollar and the tokens can drive demand for U.S. Treasuries by requiring issuers to hold large, liquid, and safe reserves to support a 1:1 peg to the greenback. "Stablecoins are drawing for the Treasury market," said Yie-Hsin Hung, CEO of State Street Global Advisors, in keynote remarks at the Money Fund Symposium on Monday. She said about 80% of the stablecoin market is invested in either Treasury bills, known as T-bills, or repos, which are repurchase agreements. That represents about $200 billion, roughly less than 2% of the overall Treasury market. "But stablecoins are growing fast, and most likely, will outpace the growth of Treasury supply," Hung said. As more financial institutions and corporations adopt stablecoin for payments, remittances, or decentralized finance applications, issuers need to hold more reserves to back the growing supply. For instance, if the market capitalization of USDC, a stablecoin issued by Circle, increases by $10 billion, the issuer might purchase $10 billion in Treasuries to maintain the peg. Circle, a payments technology company, and Tether, a blockchain-enabled platform, are the two largest stablecoin issuers. Given expectations of looming Treasury supply of as much as $1 trillion by the end of the year, the market is looking for an incremental buyer that would be a source of new demand for U.S. government debt. Stablecoin issuers fit the bill, market participants said. "If they do indeed squeeze this supply balloon on Treasuries and rely on the front end of the curve for debt issuance, we think that one of the that all this demand that's coming from (U.S. Treasury Secretary Scott) Bessent cover in order to make that shift to the shorter end," said Mark Cabana, head of U.S. rates strategy at BofA Securities, during one of sessions at the symposium. Cabana noted that stablecoin issuers tend to buy T-bills and shorter-dated Treasury coupons. Adam Ackermann, head of portfolio management at Paxos, a financial services and technology company, said he has had multiple conversations with the largest banks in the world wanting a stablecoin. "They're calling us and saying: I need a stablecoin in eight weeks. How can we get one?" "What's somewhat concerning is we're just at this fever pitch right now," Ackermann said. "It's great for the industry, but we need to start to put some guardrails on things." Stablecoins' popularity further ramped up after the U.S. Senate passed last week a landmark bill to create a regulatory framework for the token called the GENIUS Act. The Republican-controlled House of Representatives still needs to pass its version of the bill before it heads to President Donald Trump's desk for approval, but the bill's passage bolstered hopes of wider adoption of a once-niche part of the crypto sector. The stablecoin market is worth about $256 billion, according to crypto data provider CoinMarketCap, and is estimated by Standard Chartered to reach $2 trillion by 2028 if the legislation is signed by Trump. "I expect that there will be a proliferation of stablecoins," Cabana said. "It will be an incremental demand source (for Treasuries), I would guess, over the next three to five, certainly 10 years." (Reporting by Gertrude Chavez-Dreyfuss; Editing by Alden Bentley and Nia Williams)
Yahoo
16 hours ago
- Business
- Yahoo
US Treasuries face stablecoin-driven demand surge as supply looms
By Gertrude Chavez-Dreyfuss BOSTON (Reuters) -The potential for stablecoins to fuel demand for short-term U.S. Treasury securities was a hot topic at a money market fund conference in Boston this week, with investors expecting these digital tokens to absorb a huge supply of government debt later this year. Stablecoins are pegged to highly liquid assets such as the U.S. dollar and the tokens can drive demand for U.S. Treasuries by requiring issuers to hold large, liquid, and safe reserves to support a 1:1 peg to the greenback. "Stablecoins are drawing for the Treasury market," said Yie-Hsin Hung, CEO of State Street Global Advisors, in keynote remarks at the Money Fund Symposium on Monday. She said about 80% of the stablecoin market is invested in either Treasury bills, known as T-bills, or repos, which are repurchase agreements. That represents about $200 billion, roughly less than 2% of the overall Treasury market. "But stablecoins are growing fast, and most likely, will outpace the growth of Treasury supply," Hung said. As more financial institutions and corporations adopt stablecoin for payments, remittances, or decentralized finance applications, issuers need to hold more reserves to back the growing supply. For instance, if the market capitalization of USDC, a stablecoin issued by Circle, increases by $10 billion, the issuer might purchase $10 billion in Treasuries to maintain the peg. Circle, a payments technology company, and Tether, a blockchain-enabled platform, are the two largest stablecoin issuers. Given expectations of looming Treasury supply of as much as $1 trillion by the end of the year, the market is looking for an incremental buyer that would be a source of new demand for U.S. government debt. Stablecoin issuers fit the bill, market participants said. "If they do indeed squeeze this supply balloon on Treasuries and rely on the front end of the curve for debt issuance, we think that one of the that all this demand that's coming from (U.S. Treasury Secretary Scott) Bessent cover in order to make that shift to the shorter end," said Mark Cabana, head of U.S. rates strategy at BofA Securities, during one of sessions at the symposium. Cabana noted that stablecoin issuers tend to buy T-bills and shorter-dated Treasury coupons. Adam Ackermann, head of portfolio management at Paxos, a financial services and technology company, said he has had multiple conversations with the largest banks in the world wanting a stablecoin. "They're calling us and saying: I need a stablecoin in eight weeks. How can we get one?" "What's somewhat concerning is we're just at this fever pitch right now," Ackermann said. "It's great for the industry, but we need to start to put some guardrails on things." Stablecoins' popularity further ramped up after the U.S. Senate passed last week a landmark bill to create a regulatory framework for the token called the GENIUS Act. The Republican-controlled House of Representatives still needs to pass its version of the bill before it heads to President Donald Trump's desk for approval, but the bill's passage bolstered hopes of wider adoption of a once-niche part of the crypto sector. The stablecoin market is worth about $256 billion, according to crypto data provider CoinMarketCap, and is estimated by Standard Chartered to reach $2 trillion by 2028 if the legislation is signed by Trump. "I expect that there will be a proliferation of stablecoins," Cabana said. "It will be an incremental demand source (for Treasuries), I would guess, over the next three to five, certainly 10 years." Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
20-05-2025
- Business
- Yahoo
SSGA's Hung on Fed Rate Cuts, Dollar Weakness
State Street Global Advisors President and CEO Yie-Hsin Hung says the Federal Reserve should cut interest rates three times in the second half of this year to support the weakening economy. Hung speaks with David Rubenstein for an episode of Bloomberg Wealth. This interview was recorded April 3 in New York. Sign in to access your portfolio
Yahoo
17-05-2025
- Business
- Yahoo
State Street, smallcase partner to enhance global investment access in India
State Street's asset management division State Street Global Advisors (SSGA) has established a strategic partnership with smallcase, a platform for model portfolios in India. The strategic partnership will provide SSGA with a distribution opportunity for its SPDR ETFs by being featured on smallcase's platform technology to widen access for investors in India seeking investment exposures globally. On the other hand, SSGA will provide strategic support as smallcase looks at global expansion and find ways in which State Street Corporation's global wealth services can advance that growth. SSGA CEO Yie-Hsin Hung said: 'India remains a priority market for SSGA, and we are impressed by the innovation smallcase brings to the investment ecosystem. 'This relationship and investment aligns with our strategy of collaborating with leading wealth technology firms to enhance investor ease of access, choice and experience.' Founded in 2015 and based in Bangalore, smallcase has facilitated over $16bn in transactions since its inception. The platform allows individual investors to access curated portfolios, known as "smallcases," which consist of stocks and ETFs. In 2023, smallcase expanded its offerings by entering the asset management sector, focusing on index funds and ETFs as India's only passive-only fund house. smallcase co-founder and CEO Vasanth Kamath said: 'Our new strategic relationship with State Street Global Advisors marks a significant milestone in our journey to offer global equities exposure to our users. 'SSGA's deep expertise, strong track record, and global reach make this collaboration a crucial step in our expansion into the international wealth marketplace.' This partnership comes after SSGA recently participated in smallcase's $50m Series D funding round. For SSGA, this marks its first investment in the growing Indian asset and wealth management market. State Street Global Advisors serves various clients, including governments, institutions and financial advisors. The company oversees approximately $4.67tn in assets. Last month, State Street reported a net income of $644m for Q1 2025, marking a 39% increase from $463m in the same quarter of last year. "State Street, smallcase partner to enhance global investment access in India" was originally created and published by Private Banker International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Wire
15-05-2025
- Business
- Business Wire
State Street Global Advisors Forms Strategic Relationship With smallcase to Deepen Commitment to India's Fintech Ecosystem And Enhanc e Global Market Access For Indian Investors
BOSTON & BANGALORE, India--(BUSINESS WIRE)--State Street Global Advisors (SSGA), the asset management arm of State Street Corporation (NYSE: STT) and one of the world's leading investment managers, announced a strategic relationship with smallcase, India's largest model portfolios platform. The collaboration is part of SSGA's strategic investment in smallcase announced recently. Together with smallcase, we are excited to further the adoption of wealth-tech in India and improve individual investors' seamless access to global investment solutions - Yie-Hsin Hung, CEO of SSGA. The relationship will offer SSGA a strategic distribution opportunity for its SPDR ETFs by being featured on smallcase's platform technology to broaden access for Indian investors seeking global investment exposures. SSGA will provide strategic support as smallcase plans for global expansion and explore ways in which State Street Corporation's global wealth services can further that growth. "India remains a priority market for SSGA, and we are impressed by the innovation smallcase brings to the investment ecosystem," said Yie-Hsin Hung, CEO of SSGA. "This relationship and investment aligns with our strategy of collaborating with leading wealth technology firms to enhance investor ease of access, choice and experience. Together with smallcase, we are excited to further the adoption of wealth-tech in India and improve individual investors' seamless access to global investment solutions.' Founded in 2015 and headquartered in Bangalore, smallcase gives individual investors access to 'smallcases' or model portfolios—curated portfolios of stocks and ETFs. Designed to make investing simple and accessible regardless of investor's experience or financial knowledge, $16B+ has been transacted in smallcases since inception. Speaking on the announcement, Vasanth Kamath, Co-founder and CEO, smallcase said, 'Our new strategic relationship with State Street Global Advisors marks a significant milestone in our journey to offer global equities exposure to our users. SSGA's deep expertise, strong track record, and global reach make this collaboration a crucial step in our expansion into the international wealth marketplace. We are also excited to have SSGA join as a shareholder in our mission to help more investors design better financial outcomes.' SSGA recently participated in smallcase's $50M Series D funding round. This marks its first investment in the rapidly growing Indian asset and wealth management market. About State Street Global Advisors For over four decades, State Street Global Advisors has served the world's governments, institutions, and financial advisors. With a rigorous, risk-aware approach built on research, analysis, and market-tested experience, and as pioneers in index and ETF investing, we are always inventing new ways to invest. As a result, we have become the world's fourth-largest asset manager* with US $4.67 trillion† under our care. *Pensions & Investments Research Center, as of 12/31/23. † This figure is presented as of March 31, 2025 and includes ETF AUM of $1,553.58 billion USD of which approximately $106.42 billion USD in gold assets with respect to SPDR products for which State Street Global Advisors Funds Distributors, LLC (SSGA FD) acts solely as the marketing agent. SSGA FD and State Street Global Advisors are affiliated. Please note all AUM is unaudited. About smallcase smallcase is a leading provider of investment products and platforms to the Indian capital markets industry. Launched in 2016, it operates India's largest model portfolios platform and has served over 10 million individual investors across all its offerings till date. smallcase's technology platforms and solutions are used by 250+ leading financial institutions and brands across research firms, advisors, wealth managers and brokerages to offer diversified exposures to their clientele. In 2023, smallcase entered the asset management space to develop index funds & ETFs as India's only passive-only fund house. Marketing Communication State Street Global Advisors Worldwide Entities Investing involves risk including the risk of loss of principal. The whole or any part of this work may not be reproduced, copied or transmitted or any of its contents disclosed to third parties without State Street Global Advisors' express written consent. All information is from State Street Global Advisors unless otherwise noted and has been obtained from sources believed to be reliable, but its accuracy is not guaranteed. There is no representation or warranty as to the current accuracy, reliability or completeness of, nor liability for, decisions based on such information and it should not be relied on as such. The information provided does not constitute investment advice and it should not be relied on as such. It should not be considered a solicitation to buy or an offer to sell a security. It does not take into account any investor's particular investment objectives, strategies, tax status or investment horizon. You should consult your tax and financial advisor. The information contained in this communication is not a research recommendation or 'investment research' and is classified as a 'Marketing Communication' in accordance with the Markets in Financial Instruments Directive (2014/65/EU) or applicable Swiss regulation. This means that this marketing communication (a) has not been prepared in accordance with legal requirements designed to promote the independence of investment research (b) is not subject to any prohibition on dealing ahead of the dissemination of investment research. This communication is directed at professional clients (this includes eligible counterparties as defined by the appropriate EU regulator who are deemed both knowledgeable and experienced in matters relating to investments. The products and services to which this communication relates are only available to such persons and persons of any other description (including retail clients) should not rely on this communication. © 2025 State Street Corporation - All Rights Reserved.
