NEW YORK (Reuters) – The US Treasury said on Friday that it was looking for advice from primary dealers on stablescoins as well as potential modifications to the 20 -year bond auction, in particular in shortening the period.
The period issued by Wherm usually begins after the announcement of a new security problem and ends the day before the real issue date. Trading generally occurs during this period, allowing investors to participate in the market and express their point of view on the price of security.
The meetings of the US Treasury with primary dealers will take place on April 24 and 25, their contribution to the budget deficit and estimates of the debt issue, among other subjects, to be considered for the announcement of reimbursement in May. Primary dealers exchange counterparts from the New York Federal Reserve, acting as market manufacturers on the Debt of the United States Government.
The 20 -year -old auction is currently announced in the middle of the month, settled at the end of the month, and has a “date of date” in the middle of the month, the period when interest begins or accumulates on a deposit.
The “date dated” is important to calculate the accumulated interests, in particular when an obligation is sold between the payment dates.
This calendar often results in a longer period for bond sales at 20 years, including the auctions of titles protected by treasury inflation, compared to other auctions, according to documents.
The ministry also requested comments from dealerships on the potential request for Treasury Treasury securities as a reserve property for Stablecoins, in particular given the recent action of Congress in this area.
Stablecoins, a type of cryptocurrency designed to maintain a constant value, generally an ankle of 1: 1 dollar, are commonly used by cryptographic traders to move funds between tokens. Their use has increased quickly in recent years and supporters say they could be used to send payments instantly.
The House of Representatives and the Senate both presented bills to create a regulatory regime for Stablecoins. The Senatoric Banking Committee has advanced a measure last month and the Chamber’s Financial Services Committee approved another last week.
(Report by Gertrude Chavez-dreyfuss in New York; edition by Nia Williams)
