In this commentary, the speaker argues that stablecoins—particularly Tether and USDC—have become major institutional investors in U.S. Treasury securities, effectively funding a significant portion of the United States’ $38 trillion debt. Tether alone holds about $135 billion of Treasuries, making it the 17th largest holder worldwide, while the combined stablecoin market exceeds $250 billion, placing it in the global top ten holders and the top ten buyers during certain periods. The speaker highlights that these purchases are made by U.S. and European institutions that use offshore jurisdictions for tax and legal purposes, not by the jurisdictions themselves. By buying Treasuries, stablecoins convert every digital dollar into government debt, reinforcing the borrowing machine. The narrative challenges the perception of crypto as a scam, positioning it as a critical, growing component of the bond market alongside traditional money‑market funds.
Chapters
Your friends still call crypto a scam, but it's the 9th biggest funder of America's $38 trillion of debt, and one of the biggest reasons they can keep taking out more without the rest of us paying for it. Stablecoins are digital versions of a dollar, and Tether's the biggest one. They back up each digital dollar by buying U.S. Treasuries, essentially lending money to the government, and they hold $135 billion in them. That number alone makes Tether the 17th biggest holder of American debt on the planet. One private company bigger than entire countries with Armies, currencies, and central banks. Add USDC and every other stablecoin. Combined, they hold over $250 billion in U.S. Treasuries. That puts the whole stablecoin market in the global top ten holders of American debt. Strip out the offshore middlemen—the Caymans and the Luxemburgs—they're not real holders. They're hedge funds and asset managers routing money through those countries for tax and legal reasons. The actual buyers are U.S. and European institutions wearing a Cayman jersey. You're looking at fifth. 5th on Earth. The asset class that your friends called a scam is sitting in the same league as the actual countries holding the dollar up. The buying is even bigger than the holdings. In one recent stretch, Tether and Circle alone bought $41 billion in US Treasuries. That made them the 7th largest buyer of American government debt that period. They outbought Singapore, outbought Norway, outbought Israel, real countries with real treasuries, outbought by 2 crypto companies. That's not a side story. That's the new bond market. The European Central Bank just confirmed it. Their report puts stablecoin reserves in the same room as the top 20 money market funds on Earth. Those funds are some of the biggest buyers of US Treasuries on Wall Street. Stablecoins didn't replace them. They joined the club. The dollar isn't getting replaced. It's getting rebuilt on crypto rails. Every dollar that buys a stablecoin becomes a US Treasury bought. That's the flow. That's what's keeping America's $38 trillion borrowing machine alive. Your friends are still calling crypto a scam. The smart ones are already adopting it.
