# Stablecoins Extend the Dollar's Reach

Dollar stablecoins keep growing as a private channel for offshore demand for US Treasury bills, and the competition to pass reserve yield to holders makes them function like money-market funds, partly offsetting the slow erosion of the dollar's reserve role.

- Conviction: 40 / 100 (forming)
- Horizon: Emerging (watchlist)
- Tracking since: 2026-10-18T00:00:00.000Z
- Last updated: 2026-10-18T06:14:51.672Z
- Canonical: https://polylog.news/trends/stablecoins-extend-dollar
- Publisher: Polylog
- Affected regions: Global

## Recent evidence

- [confirms] Circle defends its USDC revenue split as Coinbase backs a rival that pays partners more (2026-10-18): Circle is defending its USDC revenue split while Coinbase backs Open USD, which passes reserve income to partners after a management fee. Competition over T-bill yield is pushing dollar stablecoins toward a money-market-fund model, as the thesis anticipated.