Morgan Stanley analysts have stated that the tokenization of national debt markets is growing, and tokenized US government bonds are becoming popular as a substitute for stablecoins. However, the analysts pointed out that regulatory restrictions and liquidity issues suggest that tokenized government bonds may only partially replace stablecoins. The analysts also noted that large stablecoin issuers such as Tether (USDT) and Circle (USDC) do not share reserve profits with users, which not only reduces their income but also classifies stablecoins as securities. This classification would subject them to strict regulatory oversight, which could limit their use as collateral assets in the cryptocurrency market.