The post Stablecoins Now Hold $120B in U.S. Treasuries, Set to Hit $1T by 2028 appeared on BitcoinEthereumNews.com.

TLDR: Stablecoin Treasury holdings rival sovereign reserve managers at $120 billion in government debt. Industry shift from bank deposits to pure Treasury model reduces counterparty risk exposure significantly. Federal Reserve rate cuts and yield compression present near-term headwinds for stablecoin growth rates. Year 2026 marks transition point where stablecoins become predictable, visible U.S. Treasury buyer base. Stablecoin issuers have amassed over $120 billion in U.S. government debt, establishing themselves as significant Treasury holders comparable to sovereign nations.  Industry projections indicate these holdings could surge to $1 trillion by 2028, marking a transformative period for digital currency backing mechanisms. Treasury Holdings Position Stablecoins Among Major Institutional Buyers The concentration of stablecoin reserves in U.S. Treasuries has created a new category of institutional demand. Issuers now rank alongside central banks and reserve managers in terms of government debt holdings.  This positioning emerged from deliberate portfolio restructuring following banking sector stress and heightened regulatory scrutiny. Commercial bank deposits and cash equivalents were systematically replaced with Treasury bills, reverse repos, and government-only funds. The shift toward a Treasury-centric model provides issuers with enhanced security and regulatory clarity.  Direct exposure to sovereign debt reduces counterparty risk that plagued earlier backing structures. Market infrastructure adapted to accommodate this flow, with issuers establishing direct relationships with primary dealers and repo facilities.  According to data shared by Delphi Digital, the U.S. Treasury Department forecasts these holdings reaching $1 trillion within four years. Stablecoin issuers now hold over $120 billion in US government debt, more than many sovereign reserve managers. After regional banking stress and regulatory pressure on custodial risk, the industry pivoted towards a pure Treasury standard. Cash buffers and bank deposits got… pic.twitter.com/IABDzgYK7e — Delphi Digital (@Delphi_Digital) December 24, 2025 The year 2026 represents a critical milestone when stablecoins transition from peripheral players to recognized, predictable Treasury…

---

Filed under: News - @ December 25, 2025 4:14 pm