Stablecoin Providers Hold Nearly $200 Billion in Treasury Bills and Near-Maturity Securities
Money-market mutual funds absorbed approximately 85% of more than $550 billion in additional Treasury bill supply issued during July and August.
Stablecoin providers held nearly $200 billion in Treasury bills and other near-maturity Treasury securities, while money-market mutual funds absorbed most of a separate increase in Treasury bill supply during July and August.
Net Treasury bill supply rose by more than $550 billion during the two months, an increase of about 8%. Money-market mutual funds absorbed approximately 85% of that additional supply, Deputy Treasury Secretary Francis Brooke said Sept. 22.
“Money market mutual funds absorbed approximately 85% of the additional supply,” Brooke said.
The funds had about $8 trillion in assets under management by Sept. 22. The 85% figure refers specifically to purchases tied to the summer increase in Treasury bill supply, while the nearly $200 billion stablecoin figure measures existing holdings of Treasury bills and other near-maturity Treasury securities. Treasury did not identify how much of the new issuance stablecoin providers purchased directly.
Stablecoin reserves can also appear within the broader money-market fund category. Circle Internet Group held about 84% of USD Coin (USDC) reserves in the Circle Reserve Fund as of June 30. The fund invests in Treasury securities with remaining maturities of three months or less, overnight Treasury repurchase agreements and cash.
As of April 30, the Circle Reserve Fund held $19.1106 billion in direct Treasury obligations and $46.998 billion in repurchase agreements backed by Treasury securities.
The Federal Reserve bought more than $300 billion in Treasury bills during 2026 through Sept. 22 through reserve-management purchases and reinvestment of principal payments from agency securities. Through July 1, the Fed’s System Open Market Account had purchased nearly $250 billion in Treasury bills since early January, including about $160 billion in reserve-management purchases and $90 billion in reinvested agency mortgage-backed securities principal payments.
