The growth of stablecoins is currently a serious topic in global finance. That’s the message Federal Reserve Governor Stephen Milan delivered at the BCVC Summit in New York. He said the rise in stablecoins is no longer a small trend.
Milan said the growth of stablecoins is already changing the way people move, save and access dollars.
Stablecoins and global dollar demand
Milan said stablecoins are helping more people around the world access the dollar. They offer a fast, cheap and borderless way to store and spend money. A significant number of users live in areas where capital movements are severely restricted, banking systems are poor, or currencies are volatile. For them, stablecoins are a lifeline, not just another trend.
Fed just called stablecoins a “multi-trillion dollar” force
Speaking at the BCVC Founders Summit today, Fed Governor Stephen Milan said that stablecoins are no longer a sideshow but a true part of global finance.
Key takeaways from his keynote:
💵 Stablecoins are becoming a major means of… pic.twitter.com/AZpeJzfp4c
— CryptosRus (@CryptosR_Us) November 8, 2025
He explained that stablecoin growth is driving demand for U.S. Treasuries and other safe dollar assets. This is an external demand, especially in markets with limited access to the dollar system. The more stablecoins grow, the more US assets they will have to reserve. This lowers borrowing costs and puts pressure on interest rates.
genius method
A big part of this conversation is the new US law, the GENIUS Act. Milan praised the company for creating clear rules for stablecoins. He said the law requires issuers to back stablecoins on a one-to-one basis with safe dollar assets such as Treasury bills, repurchase contracts and bank deposits. This increases the credibility of stablecoins and gives stablecoin issuers a clear path to operate in the United States.
✅ Genius Act signed into law
“The GENIUS Act creates a clear and simple regulatory framework to establish and unlock the immense potential of dollar-backed stablecoins. This could potentially be the biggest revolution in financial technology since the birth of the internet itself.” pic.twitter.com/CH5pnznAuf
— White House (@WhiteHouse) July 18, 2025
Interest rates may fluctuate due to mass adoption.
According to a federal study, stablecoins could reach $1 trillion to $3 trillion over the next five years. Milan said if this happens, the neutral interest rate, known as r*, could fall. This is the rate at which the economy remains stable, neither overheating nor slowing down. The lower r* is, the more frequently the Fed may be forced to cut interest rates.
Insight: 🇺🇸 Fed Governor Milan says increased demand for stablecoins could “push down” interest rates. pic.twitter.com/Ejg28tOF9S
— Coinvo (@Coinvo) November 10, 2025
conclusion
The growth of stablecoins is rapidly shaping global finance. It could increase demand for U.S. assets, change how people access dollars and even affect interest rates. Milan believes that stablecoins are no longer side projects. They are part of the future financial system. He believes the world’s central banks will need to adjust as stablecoin growth accelerates.
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