Stablecoin Issuers’ Growing Appetite for Treasury Securities

Leduc, Sylvain; Oliveira, Luiz E.; Sawyer, Aleisha

Journal Article

Stablecoin Issuers’ Growing Appetite for Treasury Securities

Abstract: Over the past 20 years, the share of U.S. debt held by foreigners has fallen substantially. Demand for U.S. debt has partly shifted towards private investors, including from novel sources, particularly stablecoin issuers. The increase in stablecoins’ holdings of Treasury securities has helped partly offset the demand decline from some foreign governments. While their share of holdings is relatively small, if the trend continues, stablecoin issuers’ demand for short-term Treasury securities could nearly double to a more noteworthy $400 billion by the end of 2030.