By Michelle Tan, / For Made in USA Magazine
🇺🇸 The Treasury Is Running Out of Buyers
Last week, buried in a quiet update from the U.S. Department of the Treasury, a staggering number emerged:
$1.007 trillion — that’s how much the U.S. expects to borrow in the third quarter of 2025 alone.
This Number marks one of the most significant quarterly jumps in history, pushing U.S. debt issuance beyond $28 trillion. It’s not just a number. It’s a red alert. Foreign governments — once the primary buyers of U.S. debt — are stepping back. China has divested over $500 billion in the past decade. Japan, our largest creditor, is selling to defend the yen.
Just a few years ago, foreign buyers held 49% of U.S. Treasurys. Today? That figure is shrinking fast.
So who’s stepping in to fill the gap?
Source: U.S. Department of the Treasury, collected by the Federal Reserve Bank of St. Louis
💸 Stablecoins: Quietly Soaking Up U.S. Debt
Meet the unlikely hero: stablecoins.
Cryptocurrencies pegged to the U.S. dollar — like USDC and USDT — are quietly becoming one of the largest new buyers of short-term Treasury bills. Why? Because stablecoins are backed by real-world reserves, primarily short-dated Treasurys and cash.
And with the passing of the GENIUS Act in July 2025, regulatory clarity has arrived. The U.S. government officially recognizes the role of stablecoins in supporting the dollar’s dominance. Treasury Secretary Scott Bessent called this “a surge in demand for U.S. Treasurys” and a “reinvention of the dollar economy.”
When crypto markets rise, stablecoin supply increases. And when stablecoin supply rises, more Treasurys are needed to back them. It’s a brilliant flywheel — and it’s just getting started.
That begs the question: How will the administration spark demand for more stablecoin usage?
Take a look at the chart below. It shows the total market cap of cryptocurrencies, excluding stablecoins. That’s the black line.
🌐 Blockchain: The Imperative of Our Times
This Tech is about more than crypto. It’s a fundamental transformation of the global financial system.
For decades, U.S. Treasury bonds were held in a cloistered, centralized system dominated by Wall Street custodians. But the old infrastructure is cracking. Settlement delays. Shadow liquidity. Intransparent supply chains. Regulatory silos. These inefficiencies are being exposed at a time when clarity, speed, and trust are paramount.
Blockchain is not optional anymore. It’s imperative.
This theme is explored further in my earlier article, The New Age of Financial Revolution, where I discuss how tokenization is reshaping ownership, market transparency, and investor confidence — from stocks to commodities to sovereign debt.
🛠️ Made in America, Secured on the Blockchain
Blockchain Technology is where America’s strength lies — not just in innovation, but in rebuilding trust through transparency. One standout example is Verity One, a U.S.-founded technology platform that certifies and verifies products, clean water credits, and supply chains using Blockchain, AI, and IoT.
By bringing the entire production lifecycle onto the chain, Verity One offers a new level of visibility and accountability — from oyster cleaning the Potomac to “Made in USA” certifications on factory goods. Every product can now carry a digital fingerprint of origin, quality, and environmental impact.
This model fits seamlessly into America’s broader reshoring narrative. As I wrote in From Rust to Resilience, reshoring isn’t just about bringing jobs home — it’s about restoring trust in what we build. Verity One helps ensure those products are verifiable, authentic, and American.
📈 The Crypto–Treasury Symbiosis
Why is the U.S. suddenly embracing crypto?
Because it has to.
As the traditional buyers of debt dry up, the digital asset economy becomes an essential partner. President Trump’s administration isn’t just pro-crypto because of ideology — it’s because the numbers demand it.
The CLARITY Act, scheduled for Senate vote this August, will further open the floodgates. It provides the legal rails for digital assets, public blockchains, and stablecoin issuance. And with $3.7 trillion projected in future stablecoin growth, that could translate into $3.4 trillion in demand for U.S. Treasurys — a digital bailout hiding in plain sight.
🇺🇸 The Dollar Reinvented
Crypto is the next frontier of American strength: digitally native capitalism, backed by U.S. Treasurys, verifiable on Blockchain, and open to every citizen on Earth.
Stablecoins ensure demand for Treasurys. Tokenization ensures trust in goods. Blockchain ensures truth in systems.
It’s no longer just about saving the dollar — it’s about reinventing it for the age of transparency, speed, and decentralization.
From digital dollars to tokenized tomatoes, America is building something new — and it’s built to last.