Stablecoin issuers offset 40% of China's US Treasury sales, San Francisco Fed says
CIE News ·
San Francisco Fed researchers found Tether and Circle added roughly $200 billion in US Treasuries over five years, replacing over 40% of China's parallel debt cut, CryptoSlate reported.
Stablecoin issuers have accumulated about $200 billion in US Treasury securities and repurchase agreements over the past five years, according to research from the Federal Reserve Bank of San Francisco reported by CryptoSlate. The study noted that this demand, led by Tether (USDT) and Circle (USDC), offset more than 40% of the decline in China's Treasury holdings across the same period. While China reduced longer-dated debt, stablecoin issuers primarily acquired short-term Treasury bills, with the San Francisco Fed modeling that stablecoin Treasury reserves could reach roughly $400 billion by 2030.