The UK is ready to provide ammunition for the stablecoin market: short-term government bonds are going to expand.

[Coin World] The UK Debt Management Office plans to hold a consultation in January, focusing on how to expand the issuance of ultra-short-term debt. This matter is actually quite interesting behind the scenes—they want to provide more liquidity support to stablecoin issuers while also strengthening and enlarging the GBP money market.

In simple terms, stablecoins require collateral assets, and short-term government bonds are the most attractive type. The UK is learning from the American playbook, as the US Treasury previously flooded the market with treasury bonds to satisfy demand. Now it's the pound's turn, and it's evident that governments around the world are trying to find ways to connect traditional finance with the crypto world.

If this policy is implemented, it will definitely be a positive for the expansion of stablecoins like USDC and USDT in the pound market.