Stablecoin providers hold nearly $200 billion in US Treasury debt

Stablecoin issuers currently hold nearly $200 billion in short-dated US government debt. While stablecoins represent significant investors in the Treasury market, data from the Treasury Department indicates that money-market mutual funds absorbed approximately 85% of the $550 billion surge in net bill supply during July and August 2026. The Treasury noted that while stablecoin reserves are a material component of government finance, recent incremental demand has been driven primarily by money funds and the Federal Reserve.