Stablecoin Issuers Add $200 Billion in Treasury Holdings Over Five Years

Stablecoin issuers added about $200 billion in U.S. Treasury securities over five years, an increase equal to more than 40% of the decline in China’s Treasury holdings over the same period.

The comparison involves different debt: China’s reduction was mostly in longer-term securities, while stablecoin issuers accumulated short-term Treasuries.

Matt Hougan, chief investment officer at Bitwise, described conversations with more than 40 advisers in a June 10, 2026, memo. During one day of sales calls, the advisers showed more interest in stablecoins and tokenization than in Bitcoin (BTC). Hougan viewed those conversations as a possible sign of where future crypto investment could flow, though they were not a survey.

Tether and USD Coin were the two largest stablecoins, together representing more than 80% of stablecoin market capitalization as of mid-August 2026. Stablecoin issuers hold short-term Treasuries alongside cash, bank deposits and other assets.

San Francisco Fed researchers projected that issuers could hold roughly $400 billion in short-term Treasuries by 2030 if recent growth persists. The projection is uncertain and depends in part on adoption, regulation and competing payment technologies. Even at that level, stablecoin holdings would remain a small share of U.S. government financing needs.