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Original Article
Stablecoin Reserve Demand and Treasury Convenience Yields: Private Money, Safe-Asset Scarcity, and the Seigniorage of a Strategic Issuer
Ian Staley1
1 Independent Researcher, United States.
Published Online: July-August 2026
Pages: 224-232
Cite this article
↗ https://www.doi.org/10.59256/ijire.20260704024
References
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10.1093/qje/qjw028.
3. Y. Li and S. Mayer, "Money creation in decentralized finance: A dynamic model of stablecoin and crypto shadow banking," CESif o
Working Paper No. 9260, 2022. [Online]. Available: https://ssrn.com/abstract=3928607 (accessed Jul. 2026).
4. A. d'Avernas, V. Maurin, and Q. Vandeweyer, "Can stablecoins be stable?," Management Science, 2025, articles in advance, doi:
10.1287/mnsc.2024.06992.
5. R. Ahmed and I. Aldasoro, "Stablecoins and safe asset prices," BIS Working Paper No. 1270, Bank for International Settlements,
Basel, Switzerland, 2025, revised 2026. [Online]. Available: https://www.bis.org/publ/work1270.htm (accessed Jul. 2026).
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2025, doi: 10.3386/w34066.
7. R. J. Caballero, E. Farhi, and P.-O. Gourinchas, "The safe assets shortage conundrum," Journal of Economic Perspectives, vol. 31, no.
3, pp. 29-46, 2017, doi: 10.1257/jep.31.3.29.
8. B. Klein, "The competitive supply of money," Journal of Money, Credit and Banking, vol. 6, no. 4, pp. 423-453, 1974, doi:
10.2307/1991700.
9. G. B. Gorton, "The history and economics of safe assets," Annual Review of Economics, vol. 9, pp. 547-586, 2017, doi:
10.1146/annurev-economics-033017-125810.
10. G. B. Gorton and J. Zhang, "Taming wildcat stablecoins," University of Chicago Law Review, vol. 90, no. 3, pp. 909-971, 2023.
[Online]. Available: https://lawreview.uchicago.edu/ (accessed Jul. 2026).
11. D. W. Diamond and P. H. Dybvig, "Bank runs, deposit insurance, and liquidity," Journal of Political Economy, vol. 91, no. 3, pp. 401-
419, 1983, doi: 10.1086/261155.
12. M. Kacperczyk and P. Schnabl, "How safe are money market funds?," Quarterly Journal of Economics, vol. 128, no. 3, pp. 1073-1122,
2013, doi: 10.1093/qje/qjt010.
13. G. B. Gorton and A. Metrick, "Securitized banking and the run on repo," Journal of Financial Economics, vol. 104, no. 3, pp. 425-
451, 2012, doi: 10.1016/j.jfineco.2011.03.016.
14. A. Sunderam, "Money creation and the shadow banking system," Review of Financial Studies, vol. 28, no. 4, pp. 939-977, 2015, doi:
10.1093/rfs/hhu083.15. J. C. Stein, "Monetary policy as financial stability regulation," Quarterly Journal of Economics, vol. 127, no. 1, pp. 57-95, 2012, doi:
10.1093/qje/qjr054.
16. M. Sidrauski, "Rational choice and patterns of growth in a monetary economy," American Economic Review, vol. 57, no. 2, pp. 534-
544, 1967. [Online]. Available: https://www.jstor.org/stable/1821653 (accessed Jul. 2026).
17. U.S. Congress, "Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act," Public Law 119-27, 119th
Congress, 2025. [Online]. Available: https://www.congress.gov/ (accessed Jul. 2026).
18. T. Keister and D. Sanches, "Should central banks issue digital currency?," Review of Economic Studies, vol. 90, no. 1, pp. 404-431,
2023, doi: 10.1093/restud/rdac017.
19. R. Greenwood, S. G. Hanson, and J. C. Stein, "A comparative-advantage approach to government debt maturity," Journal of Finance,
vol. 70, no. 4, pp. 1683-1722, 2015, doi: 10.1111/jofi.12253
2, pp. 233-267, 2012, doi: 10.1086/666526.
2. S. Nagel, "The liquidity premium of near-money assets," Quarterly Journal of Economics, vol. 131, no. 4, pp. 1927-1971, 2016, doi:
10.1093/qje/qjw028.
3. Y. Li and S. Mayer, "Money creation in decentralized finance: A dynamic model of stablecoin and crypto shadow banking," CESif o
Working Paper No. 9260, 2022. [Online]. Available: https://ssrn.com/abstract=3928607 (accessed Jul. 2026).
4. A. d'Avernas, V. Maurin, and Q. Vandeweyer, "Can stablecoins be stable?," Management Science, 2025, articles in advance, doi:
10.1287/mnsc.2024.06992.
5. R. Ahmed and I. Aldasoro, "Stablecoins and safe asset prices," BIS Working Paper No. 1270, Bank for International Settlements,
Basel, Switzerland, 2025, revised 2026. [Online]. Available: https://www.bis.org/publ/work1270.htm (accessed Jul. 2026).
6. M. Azzimonti and V. Quadrini, "Digital economy, stablecoins, and the global financial system," NBER Working Paper No. 34066,
2025, doi: 10.3386/w34066.
7. R. J. Caballero, E. Farhi, and P.-O. Gourinchas, "The safe assets shortage conundrum," Journal of Economic Perspectives, vol. 31, no.
3, pp. 29-46, 2017, doi: 10.1257/jep.31.3.29.
8. B. Klein, "The competitive supply of money," Journal of Money, Credit and Banking, vol. 6, no. 4, pp. 423-453, 1974, doi:
10.2307/1991700.
9. G. B. Gorton, "The history and economics of safe assets," Annual Review of Economics, vol. 9, pp. 547-586, 2017, doi:
10.1146/annurev-economics-033017-125810.
10. G. B. Gorton and J. Zhang, "Taming wildcat stablecoins," University of Chicago Law Review, vol. 90, no. 3, pp. 909-971, 2023.
[Online]. Available: https://lawreview.uchicago.edu/ (accessed Jul. 2026).
11. D. W. Diamond and P. H. Dybvig, "Bank runs, deposit insurance, and liquidity," Journal of Political Economy, vol. 91, no. 3, pp. 401-
419, 1983, doi: 10.1086/261155.
12. M. Kacperczyk and P. Schnabl, "How safe are money market funds?," Quarterly Journal of Economics, vol. 128, no. 3, pp. 1073-1122,
2013, doi: 10.1093/qje/qjt010.
13. G. B. Gorton and A. Metrick, "Securitized banking and the run on repo," Journal of Financial Economics, vol. 104, no. 3, pp. 425-
451, 2012, doi: 10.1016/j.jfineco.2011.03.016.
14. A. Sunderam, "Money creation and the shadow banking system," Review of Financial Studies, vol. 28, no. 4, pp. 939-977, 2015, doi:
10.1093/rfs/hhu083.15. J. C. Stein, "Monetary policy as financial stability regulation," Quarterly Journal of Economics, vol. 127, no. 1, pp. 57-95, 2012, doi:
10.1093/qje/qjr054.
16. M. Sidrauski, "Rational choice and patterns of growth in a monetary economy," American Economic Review, vol. 57, no. 2, pp. 534-
544, 1967. [Online]. Available: https://www.jstor.org/stable/1821653 (accessed Jul. 2026).
17. U.S. Congress, "Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act," Public Law 119-27, 119th
Congress, 2025. [Online]. Available: https://www.congress.gov/ (accessed Jul. 2026).
18. T. Keister and D. Sanches, "Should central banks issue digital currency?," Review of Economic Studies, vol. 90, no. 1, pp. 404-431,
2023, doi: 10.1093/restud/rdac017.
19. R. Greenwood, S. G. Hanson, and J. C. Stein, "A comparative-advantage approach to government debt maturity," Journal of Finance,
vol. 70, no. 4, pp. 1683-1722, 2015, doi: 10.1111/jofi.12253
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