Tom Lee said stablecoins are becoming integral to the functioning of the financial system and to liquidity. According to NS3.AI, Federal Reserve Bank of San Francisco research found that stablecoin issuers increased their U.S. Treasury holdings by approximately $200 billion over five years.

The bank said that increase was equal to more than 40% of the decline in China's Treasury holdings over the same period. Researchers projected that stablecoin issuers' demand for short-term Treasuries could nearly double to approximately $400 billion by the end of 2030 if the current trajectory continues.