{"id":4271,"date":"2025-08-02T23:46:59","date_gmt":"2025-08-03T03:46:59","guid":{"rendered":"https:\/\/madeinusanews.com\/?p=4271"},"modified":"2025-08-02T23:46:59","modified_gmt":"2025-08-03T03:46:59","slug":"crypto-the-new-buyer-of-u-s-treasurys","status":"publish","type":"post","link":"https:\/\/madeinusanews.com\/?p=4271","title":{"rendered":"Crypto: The New Buyer of U.S. Treasurys"},"content":{"rendered":"\n

By Michelle Tan, \/ For Made in USA Magazine<\/em><\/p>\n\n\n\n

\ud83c\uddfa\ud83c\uddf8 The Treasury Is Running Out of Buyers<\/h3>\n\n\n\n

Last week, buried in a quiet update from the U.S. Department of the Treasury, a staggering number emerged:<\/p>\n\n\n\n

$1.007 trillion<\/strong> \u2014 that\u2019s how much the U.S. expects to borrow in the third quarter of 2025 alone.<\/p>\n\n\n\n

This Number marks one of the most significant quarterly jumps in history, pushing U.S. debt issuance beyond $28 trillion<\/strong>. It\u2019s not just a number. It\u2019s a red alert. Foreign governments \u2014 once the primary buyers of U.S. debt \u2014 are stepping back. China has divested over $500 billion in the past decade. Japan, our largest creditor, is selling to defend the yen.<\/p>\n\n\n\n

Just a few years ago, foreign buyers held 49% of U.S. Treasurys<\/strong>. Today? That figure is shrinking fast.<\/p>\n\n\n\n

So who\u2019s stepping in to fill the gap?<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Source: U.S. Department of the Treasury, collected by the Federal Reserve Bank of St. Louis<\/em><\/p>\n\n\n\n

\ud83d\udcb8 Stablecoins: Quietly Soaking Up U.S. Debt<\/h3>\n\n\n\n

Meet the unlikely hero: stablecoins<\/strong>.<\/p>\n\n\n\n

Cryptocurrencies pegged to the U.S. dollar \u2014 like USDC<\/strong> and USDT<\/strong> \u2014 are quietly becoming one of the largest new buyers of short-term Treasury bills. Why? Because stablecoins are backed by real-world reserves<\/strong>, primarily short-dated Treasurys and cash.<\/p>\n\n\n\n

And with the passing of the GENIUS Act<\/strong> in July 2025, regulatory clarity has arrived. The U.S. government officially recognizes the role of stablecoins in supporting the dollar\u2019s dominance. Treasury Secretary Scott Bessent called this \u201ca surge in demand for U.S. Treasurys\u201d and a \u201creinvention of the dollar economy.\u201d<\/p>\n\n\n\n

When crypto markets rise, stablecoin supply increases. And when stablecoin supply rises, more Treasurys are needed to back them<\/strong>. It\u2019s a brilliant flywheel \u2014 and it\u2019s just getting started.<\/p>\n\n\n\n

That begs the question: How<\/em> will the administration spark demand for more stablecoin usage?<\/p>\n\n\n\n

Take a look at the chart below. It shows the total market cap of cryptocurrencies, excluding stablecoins. That\u2019s the black line.<\/p>\n\n\n

\n
\"\"<\/figure>\n<\/div>\n\n\n

\ud83c\udf10 Blockchain: The Imperative of Our Times<\/h3>\n\n\n\n

This Tech is about more than crypto. It\u2019s a fundamental transformation of the global financial system<\/strong>.<\/p>\n\n\n\n

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<\/strong> are paramount.<\/p>\n\n\n\n

Blockchain is not optional anymore. It\u2019s imperative.<\/strong><\/p>\n\n\n\n

This theme is explored further in my earlier article, The New Age of Financial Revolution<\/strong>, where I discuss how tokenization is reshaping ownership, market transparency, and investor confidence \u2014 from stocks to commodities to sovereign debt.<\/p>\n\n\n\n

\ud83d\udee0\ufe0f Made in America, Secured on the Blockchain<\/h3>\n\n\n\n

Blockchain Technology is where America\u2019s strength lies \u2014 not just in innovation, but in rebuilding trust through transparency. One standout example is Verity One<\/strong>, a U.S.-founded technology platform that certifies and verifies products, clean water credits, and supply chains using Blockchain, AI, and IoT.<\/p>\n\n\n\n

By bringing the entire production lifecycle onto the chain<\/strong>, Verity One offers a new level of visibility and accountability \u2014 from oyster cleaning the Potomac to \u201cMade in USA\u201d certifications on factory goods. Every product can now carry a digital fingerprint of origin, quality, and environmental impact.<\/p>\n\n\n\n

This model fits seamlessly into America\u2019s broader reshoring narrative. As I wrote in From Rust to Resilience<\/a><\/strong>, reshoring isn\u2019t just about bringing jobs home \u2014 it\u2019s about restoring trust<\/strong> in what we build. Verity One helps ensure those products are verifiable<\/strong>, authentic<\/strong>, and American<\/strong>.<\/p>\n\n\n\n

\ud83d\udcc8 The Crypto\u2013Treasury Symbiosis<\/h3>\n\n\n\n

Why is the U.S. suddenly embracing crypto?<\/p>\n\n\n\n

Because it has to.<\/p>\n\n\n\n

As the traditional buyers of debt dry up, the digital asset economy becomes an essential partner<\/strong>. President Trump\u2019s administration isn\u2019t just pro-crypto because of ideology \u2014 it\u2019s because the numbers demand it.<\/p>\n\n\n\n

The CLARITY Act<\/strong>, 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<\/strong> projected in future stablecoin growth, that could translate into $3.4 trillion in demand for U.S. Treasurys<\/strong> \u2014 a digital bailout hiding in plain sight.<\/p>\n\n\n\n

\ud83c\uddfa\ud83c\uddf8 The Dollar Reinvented<\/h3>\n\n\n\n

Crypto is the next frontier of American strength: digitally native capitalism<\/strong>, backed by U.S. Treasurys, verifiable on Blockchain, and open to every citizen on Earth.<\/p>\n\n\n\n

Stablecoins ensure demand for Treasurys<\/strong>. Tokenization ensures trust in goods<\/strong>. Blockchain ensures truth in systems<\/strong>.<\/p>\n\n\n\n

It\u2019s no longer just about saving the dollar \u2014 it\u2019s about reinventing it<\/strong> for the age of transparency, speed, and decentralization.<\/p>\n\n\n\n

From digital dollars to tokenized tomatoes, America is building something new \u2014 and it\u2019s built to last.<\/p>\n","protected":false},"excerpt":{"rendered":"

By Michelle Tan, \/ For Made in USA Magazine \ud83c\uddfa\ud83c\uddf8 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 \u2014 that\u2019s how much the U.S. expects to borrow in the third quarter of 2025 alone. This Number […]<\/p>\n","protected":false},"author":3,"featured_media":4272,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[141,236,844,915],"class_list":["post-4271","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-fintech","tag-blockchain","tag-crypto","tag-treasury","tag-web3"],"_links":{"self":[{"href":"https:\/\/madeinusanews.com\/index.php?rest_route=\/wp\/v2\/posts\/4271","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/madeinusanews.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/madeinusanews.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/madeinusanews.com\/index.php?rest_route=\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/madeinusanews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=4271"}],"version-history":[{"count":0,"href":"https:\/\/madeinusanews.com\/index.php?rest_route=\/wp\/v2\/posts\/4271\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/madeinusanews.com\/index.php?rest_route=\/wp\/v2\/media\/4272"}],"wp:attachment":[{"href":"https:\/\/madeinusanews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=4271"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/madeinusanews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=4271"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/madeinusanews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=4271"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}