Stablecoins hold nearly $200 billion in US debt, but money funds bought the surge
Summary
Money-market funds absorbed about 85% of the more than $550 billion increase in Treasury-bill supply in July and August, according to the Treasury Department. Stablecoin providers hold nearly $200 billion in bills and other short-dated Treasury securities, but that is a total holding figure, not a measure of summer purchases; some reserves are invested through money-market funds and repos, creating overlap. The Federal Reserve also bought more than $300 billion in bills in 2026 through secondary-market operations, while foreign bill holdings rebounded by $38.8 billion in July. Treasury says stablecoin demand could grow as rules implementing the GENIUS Act are finalized, but the recent issuance surge was chiefly absorbed by money funds.
