Bond-Market Pros Are Unimpressed With Baby Whales From Crypto

They are turning into the strangest of bedfellows in the financial world: The famously safe securities issued by the US Treasury and the notoriously not-so-safe world of cryptocurrencies.

Issuers of crypto stablecoins meant to track the dollar one-for-one have become noticeable players in the Treasury market as they seek the safest and most-liquid assets to back the value of their tokens.

For crypto promoters, it’s a development worth touting as the industry seeks friendlier relations with the US government. Tether Holdings Ltd., issuer of the largest stablecoin, has said it is able to “help support US and global financial ...