Stablecoin issuers added about $200 billion in Treasuries and repos over five years
Researchers at the San Francisco Fed say Tether and Circle added about $200 billion in Treasuries and repos over five years, more than 40% of China's decline.
Why it matters
The Fed's figures place two private stablecoin issuers among the largest sources of incremental demand for US government debt as foreign official buyers retreat, which puts them in the position of companies whose funding choices move the Treasury market. The SEC's clearing expansion reaches the same issuers, because turning reserves into dollars for redemptions depends on Treasury market access. Neither CryptoSlate piece quantifies the effect on bank funding costs or Treasury yields.
Key facts
Researchers at the Federal Reserve Bank of San Francisco say Tether and Circle increased their Treasury securities and repurchase-agreement holdings by about $200 billion over five years.
200,000,000,000 USDReported by CryptoSlate
The San Francisco Fed researchers put that increase at more than 40% of the decline in China's Treasury holdings over the same five years.
40 %Reported by CryptoSlate
Stablecoin issuers' Treasury holdings have risen more than tenfold in five years.
Reported by CryptoSlate
Foreign investors' share of outstanding Treasury securities fell from more than half around 2008 to roughly 30% by early 2026.
30 %Reported by CryptoSlate
The San Francisco Fed estimates stablecoin issuers could hold about $400 billion in Treasuries by 2030 if growth continues.
400,000,000,000 USDReported by CryptoSlate
Stablecoin issuers depend on Treasury market liquidity to convert reserve assets into dollars for customer redemptions.
Reported by CryptoSlate
CryptoSlate's analysis says stablecoin purchases move household deposits into issuer-controlled bank accounts that banks may value less than retail deposits.
Reported by CryptoSlate
What happened
Researchers at the Federal Reserve Bank of San Francisco say Tether and Circle have increased their Treasury securities and repurchase-agreement holdings by about $200 billion over the past five years, more than 40% of the decline in China's Treasury holdings over the same period. CryptoSlate carried the finding first on 2 October and Crypto News republished the same account the following morning, so no outlet in this set reported it independently. The same research puts stablecoin issuers' Treasury holdings up more than tenfold in five years and estimates they could reach about $400 billion by 2030 if growth continues. It also says foreign investors held more than half of outstanding Treasuries around 2008 but roughly 30% by early 2026, with foreign governments declining even more sharply in relative importance inside that group. Two later CryptoSlate pieces cover the mechanics behind such buying: one argues that stablecoin purchases push household deposits into issuer-controlled bank accounts that banks may value less, and the other reports the SEC is pushing more eligible Treasury trades and repos through central clearing, with deadlines of 31 December and 30 June 2027. What the reporting does not settle is whether issuer buying broadens the Treasury creditor base or swaps a dispersed one for a concentrated one.
How the story developed
- First report
First report by CryptoSlate
Stablecoin issuers have replaced 40% of China’s lost US Treasury demand
- Update
CryptoSlate reports the San Francisco Fed finding on stablecoin issuer Treasury holdings
Researchers put the five-year increase in Tether's and Circle's Treasury and repo holdings at about $200 billion, more than 40% of China's decline.
- Update
CryptoSlate analyses how stablecoin buying changes bank deposits
The piece says the dollars stay in the banking system but arrive in larger, issuer-controlled accounts that banks may treat as costlier or less dependable funding.
- Update
CryptoSlate reports SEC central clearing deadlines for Treasury trades
Eligible outright Treasury purchases and sales are due by 31 December, with eligible repurchase agreements due by 30 June 2027.
How coverage built up
Independent sources over time, counted the way the consensus panel counts them: a republication of a wire story does not move the line.
- 2 Oct 2026, 21:50 UTC: CryptoSlate — 1 independent source, 1 reports
Affected entities
Also mentioned: Circle, U.S. Securities and Exchange Commission, Bitcoin, USD Coin, Japan
Original sources
| Publisher | Report | Role | Published |
|---|---|---|---|
| CryptoSlate Crypto media | Stablecoin issuers have replaced 40% of China’s lost US Treasury demand | Original | |
| CryptoSlate Crypto media | Stablecoins may not drain banks of dollars but they can still make lending more expensive | Independent | |
| CryptoSlate Crypto media | New Treasury rules could change how stablecoin issuers get your dollars back | Independent | |
| Crypto News (CryptoNews.net) Aggregator | Stablecoin issuers have replaced 40% of China’s lost US Treasury demand | Syndicated |
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