$200B Stablecoin Treasury Holdings Offset China Debt Demand

The Federal Reserve Bank of San Francisco has published data showing that stablecoin issuers have added over $200 billion in Treasuries to their holdings over a five-year period.

This significant increase is seen as directly offsetting the reduced demand for U.S. debt from China, according to Matt Hougan, CIO of Bitwise Invest and co-founder of FutureProof.

The analysis suggests that this trend has boosted the entire stablecoin ecosystem, creating sustained buying pressure that supports expansion in the crypto market.