Stablecoin market size and usage have led the Federal Reserve to include them in its dollar policy research agenda. Stablecoins are dollar‑denominated tokens used for payments and as trading tools. They have grown to large market caps, with Tether valued at about $186 billion and USDC near $74 billion as of late June 2025. Their 24‑day trading volume exceeds $80 billion, roughly double Bitcoin’s volume. The Federal Reserve treats them as part of the dollar’s international role. At the Fed’s June 22‑23 International Roles of the Dollar conference, Governor Christopher Waller said stablecoins are part of the research agenda on the dollar’s global role. The conference agenda listed digital assets, market structure, reserve‑currency status and geopolitical considerations. Waller noted that stablecoins can serve as channels for global dollar intermediation alongside traditional banks and payment systems. He emphasized that the Fed is studying how private digital‑dollar claims interact with banks, reserves and wholesale payments. The stablecoin market now includes two of the five largest crypto assets by capitalization, Tether and USDC. Tether’s market capitalization is near $186 billion and its daily trading volume around $81 billion, while USDC’s capitalization is near $74 billion. These figures indicate that stablecoins have reached a scale that central‑bank researchers consider relevant to dollar liquidity and monetary policy. Circle, the issuer of USDC, reports that the token’s circulating supply was $74.3 billion on June 22 and that reserves are held in a BlackRock‑managed money market fund registered with the SEC. That structure links stablecoin demand to bank deposits, Treasury repo markets and short‑term Treasury bills. On June 5, The Clearing House announced a plan for major banks to back an on‑chain commercial‑bank‑money initiative that enables 24/7 tokenized settlement while keeping customer funds in regulated deposit accounts. The initiative aims to provide tokenized deposit clearing that matches the speed of stablecoins while remaining within the banking system. Research from the New York Fed in 2026 suggested that stablecoin activity can transmit liquidity stress to banks and complicate monetary‑policy implementation. A June BIS working paper found that dollar‑backed stablecoin inflows can lower short‑term Treasury bill yields, especially during periods of Treasury market stress. Treasury advisory materials indicate that major stablecoin issuers hold less than 1 percent of outstanding Treasury securities. The same presentation noted that growth in stablecoins could increase demand for short‑end Treasury issuance if offshore dollar demand expands. The Fed’s recent conference signals that policymakers will watch whether stablecoin growth stems from offshore dollar demand or from domestic substitution of bank deposits. Banks are testing tokenized deposits to see if they can provide the same programmability as stablecoins while remaining under regulatory oversight. Issuers must demonstrate that reserve management, redemption processes and concentration risks can withstand rapid changes in supply. Stablecoins therefore move from a peripheral crypto asset to a private dollar rail that can affect bank funding, Treasury‑bill demand and short‑term liquidity. Their continued expansion raises questions about the integration of private token issuers into the public dollar infrastructure. The next step for policymakers is to determine how the system absorbs growing stablecoin volumes and whether tokenized deposits can serve as a regulated alternative to private dollar rails.