PineBridge Turns Bullish on Dollar on Potential for Stablecoins

PineBridge Investments has flipped to an overweight position on the dollar in its multi-asset portfolio, with the explosive growth of crypto stablecoins emerging as its newest reason to bet on the greenback.

Michael Kelly, who runs the $200 billion asset manager’s global multi-asset business and sits on its management committee, said he turned positive on the dollar around the time US President Donald Trump signed the first federal regulation for stablecoins a few weeks ago. The GENIUS Act, as the law is known, requires stablecoin issuers to maintain one-to-one backing for their tokens in US currency, short-term Treasuries and money market funds, among other assets.