Stablecoins Flood U.S. Treasury Holdings with $200 Billion

Stablecoin issuers have significantly increased their holdings of U.S. Treasury securities over the past five years, adding around $200 billion to their treasuries.

This increase is equivalent to more than 40% of China's decline in Treasury holdings during the same period.

The difference lies in the type of debt held by stablecoin issuers and China: while China reduced its long-term Treasury securities, stablecoin issuers accumulated short-term Treasuries.

According to a memo from Matt Hougan, chief investment officer at Bitwise, conversations with over 40 advisers revealed more interest in stablecoins and tokenization than in Bitcoin (BTC) during sales calls.