Stablecoin issuers like Circle and Tether are gobbling up more Treasuries than most countries. Here’s how that could reshape the U.S. economy

Stablecoins Reshape U.S. Economy as Issuers Buy a Treasury Surge

What’s Happening?

Stablecoin issuers Circle and Tether are rapidly accumulating U.S. Treasuries, outpacing many nations. This trend, sparked by the recent passage of the Genius Act, is stirring conversations about financial power shifts and economic implications.

Where Is It Happening?

The U.S., with the actions centered around major financial hubs like New York and Washington D.C.

When Did It Take Place?

The trend accelerated following the Genius Act’s passage in July 2024.

How Is It Unfolding?

• Circle and Tether now hold billions in U.S. Treasuries, rivaling national holders.
• Their combined assets rival those of medium-sized economies.
• Stablecoins gain legitimacy following regulatory approval.
• Investors eye stablecoins for stability in volatile markets.
• Economists debate the long-term impact on the U.S. debt market.

Quick Breakdown

• Stablecoins mimic fiat currencies but exist on blockchain.
• Circle and Tether backed by U.S. Treasuries for stability.
• Genius Act legitimizes stablecoins, fueling their growth.
• Potential to disrupt traditional finance and sovereign debt markets.

Key Takeaways

The rapid accumulation of U.S. Treasuries by stablecoin issuers represents a seismic shift in financial power. As stablecoins gain traction, they could reshape global finance, challenge traditional banking, and influence the U.S. economy’s stability. With their value pegged to fiat currencies, stablecoins offer a haven in volatile times, but their growing influence raises questions about decentralization and financial sovereignty.

The rise of stablecoins is a wake-up call for regulators. We’re seeing a power shift that’s either a revolution or a reckoning for traditional finance.
– Dr. Leah Carter, Senior Economist at the Financial Futures Institute

Final Thought

The stablecoin surge is more than a financial trend—it’s a disruptive force with the potential to redefine global finance. As Circle and Tether reshape the Treasury market, regulators and economies alike must adapt to this new financial landscape.

Source & Credit: https://fortune.com/crypto/2025/08/09/circle-tether-stablecoins-treasuries-us-economy-impact-genius-act/