Stablecoin Giants Hold $145 Billion in U.S. Treasuries

The influence of stablecoin issuers is significantly impacting the U.S. Treasury market, with companies like Circle and Tether holding over $145 billion in US debt. This substantial investment raises concerns about potential credit risks for the financial system if confidence wanes, potentially leading to market disruptions. These stablecoins have become increasingly popular, representing 2% of short-term U.S. debt. Circle and Tether’s holdings exceed those of many nations like Germany, demonstrating their growing influence on the American Treasury market. Their impact is significant, impacting yields on short-term bills by compressing them.