Fed Board Member Waller: Stablecoins Create a "New Channel" for the US Dollar! Tokenized Assets Will Strengthen Global Liquidity and Demand for US Treasuries

According to foreign media PYMNTS, Federal Reserve (Fed) Governor Christopher J. Waller stated on the 22nd at an international conference focused on the US dollar's status that distributed ledger technology and tokenized assets such as stablecoins are creating a new pathway alongside traditional banks for the US dollar. He is optimistic about this financial innovation, believing that competition from the private sector will help further solidify the dollar's core role in the global financial system.
(Background summary: The US Senate passed the Housing Act with a high vote of 85:5, and the Fed's 4-year CBDC ban was also codified into law)
(Additional background: Nomura's chief warns: The Fed's decision not to raise interest rates in June becomes a key turning point for AI)

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• Stablecoins and Tokenization: A New Pathway for Dollar Hegemony
• Connecting Global Liquidity and U.S. Treasuries
• Innovation and Competition Coexist, Potential Risks Brought by AI

The global macroeconomy and financial infrastructure are experiencing a paradigm shift toward digitalization. According to foreign media PYMNTS, on June 22, 2026, Federal Reserve Governor Christopher J. Waller delivered the opening speech at the "Fifth Conference on the International Roles of the Dollar," hosted by the Federal Reserve, where he rarely and clearly regarded stablecoins and tokenized assets (RWA) in the cryptocurrency market as important drivers for strengthening dollar hegemony.

Stablecoins and Tokenization: A New Pathway for Dollar Hegemony

In his speech, Waller first emphasized that the reason the dollar maintains its absolute core position in the global financial system is still based on traditional solid foundations, including the large and resilient US economy, deep and complex financial markets, and high trust in US institutions and the rule of law worldwide.

However, he quickly pointed out that the global financial environment is changing rapidly. Waller emphasized that distributed ledger technology (DLT) and tokenized assets, including stablecoins, are creating entirely new dollar intermediary channels. These emerging channels not only operate alongside traditional banks and payment systems but are also beginning to integrate with them. He stated, “The international role of the dollar is also evolving. The private sector is acting swiftly to expand access to dollar-denominated assets globally, innovate financial services, and explore commercial opportunities that were previously meaningless under traditional technology.”

Regarding the impact of crypto infrastructure on traditional finance, Waller maintains an open and positive attitude. He believes that competition often results in better outcomes for consumers and society, and this complementary yet competitive relationship is driving progress in the financial system.

Connecting Global Liquidity and U.S. Treasuries

At this conference, the Fed will also explore several macroeconomic research topics closely related to cryptocurrencies. Waller outlined future research directions, including how stablecoins and blockchain infrastructure will fundamentally transform traditional payment systems and foreign exchange markets, especially with the rise of decentralized FX trading and alternative cross-border payment channels.

More importantly, the Fed is closely monitoring the symbiotic relationship between stablecoins and “U.S. safe assets.” Waller pointed out that stablecoins fully backed by US dollar reserves could create a new direct channel, seamlessly linking the enormous liquidity demand in global markets to the US Treasury market. Additionally, research will examine the potential spillover effects of stablecoins on exchange rates, dollar funding conditions, and cross-border capital flows.

Innovation and Competition Coexist, Potential Risks Brought by AI

The core question of the conference is: Will stablecoins strengthen the dollar’s role by expanding global access to dollar-denominated tools? Or will they introduce systemic tensions by changing financial intermediation models and cross-border capital flows?

Notably, besides innovations in cryptography, Fed Vice Chair Michelle Bowman recently issued warnings. She pointed out that although the financial system is actively adapting to technological advances including artificial intelligence (AI), AI also amplifies digital vulnerabilities in key financial infrastructure. This indicates that while the Fed embraces innovation, it remains highly vigilant about the systemic risks that emerging technologies may trigger.