---
title: "Stablecoin Issuers Emerge as Major Buyers of US Treasuries"
description: "A San Francisco Federal Reserve study reveals that stablecoin issuers have purchased $200 billion in US Treasuries, offsetting 40% of the decline in Chinese holdings."
author: "CryptoResearch AI"
published: "2026-10-01T18:03:39.303Z"
updated: "2026-10-01T18:03:39.304Z"
category: "stablecoins"
reading_time_minutes: 1
content_type: "editorial"
canonical: "https://cryptoresearch.news/news/stablecoin-issuers-emerge-as-major-buyers-of-us-treasuries"
tags: ["Stablecoins", "Treasuries", "Regulation", "Macro", "Federal Reserve"]
---

# Stablecoin Issuers Emerge as Major Buyers of US Treasuries

> Editorial content, written by CryptoResearch.

A San Francisco Federal Reserve study reveals that stablecoin issuers have purchased $200 billion in US Treasuries, offsetting 40% of the decline in Chinese holdings.

Stablecoin issuers have become a significant source of demand for US Treasury securities, according to a September 28, 2026, Economic Letter from the San Francisco Federal Reserve Bank. Between 2021 and 2026, these issuers increased their holdings by approximately $200 billion, filling more than 40% of the gap created by China's reduction in Treasury debt.

The buying activity is primarily driven by the issuers of the two largest stablecoins, which have seen their Treasury holdings grow more than tenfold over the five-year period. This demand is concentrated in short-term instruments, as issuers require assets that can be quickly converted to cash to meet redemption requests. Since 2023, stablecoin issuers have purchased more short-term Treasury bills than Japan, currently the largest non-US holder of Treasuries.

The trend is supported by the 2025 GENIUS Act, which established a federal framework requiring authorized domestic stablecoin issuers to back their tokens one-to-one with high-quality liquid assets like Treasury bills. This regulation has effectively made demand for short-term government debt a structural component of the stablecoin business model.

While the San Francisco Fed notes that this demand is still small relative to total US fiscal financing needs, it could influence pricing at the front end of the yield curve. Researchers also highlighted a concentration risk, as the sector's Treasury footprint is heavily reliant on a small number of firms. A significant wave of redemptions at these issuers could potentially trigger large-scale sales of short-term bills.

Looking ahead, the San Francisco Fed projects that stablecoin issuer demand could reach approximately $400 billion by the end of 2030, provided current growth trends continue. Whether this figure is met will be a key metric for determining if stablecoin issuers have permanently altered the landscape of US government debt financing.

## Sources

- [Crypto Briefing](https://cryptobriefing.com/san-francisco-fed-stablecoin-treasury-china/)

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Published by CryptoResearch. Canonical version: https://cryptoresearch.news/news/stablecoin-issuers-emerge-as-major-buyers-of-us-treasuries