Stablecoin Issuers Add $200 Billion in Treasuries—Offsetting 40% of China’s Pullback

By Isaac • October 2, 2026 7:12 pm •

Stablecoins are quietly becoming a meaningful buyer of U.S. government debt.

A new Federal Reserve Bank of San Francisco study finds that the two largest dollar stablecoin issuers increased their Treasury holdings by roughly $200 billion over the past five years. That is equal to more than 40% of the decline in China’s Treasury holdings during the same period.

That does not mean stablecoin companies have simply replaced China. The maturities are different, and the overall Treasury market is far larger.

But it does show how crypto infrastructure is beginning to matter well beyond crypto trading.

The researchers also found that stablecoin issuers have increased their short-term Treasury holdings by more than Japan since 2023. Tether