Yeah, I think thats the missing bit honestly. We already know that the proposed stablecoin legislation is aiming for providers to hold 100% reserves in UST.

Now compare that to commercial banks (who are all fractional reserve....and only a small fraction is US Treasury).

This provides treasury with built-in megaholders of UST paper....and its in their vested interest that every person on planet hold USDt or USDC because that ultimately means there is a 1:1 Treasury purchase happening.

So think about a world where Tether is 10-100x bigger, and imagine that marketcap is completely in US Treasuries. That soaks up lots of paper....