How Stablecoins Back US Debt With $109B in T-Bill Buys

The stablecoin market cap grew significantly from $200 billion to $309 billion between July and November 2025, leading issuers to buy $109 billion in US Treasury bills to comply with the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act, signed on July 18, 2025. This legislation mandates that stablecoin issuers back tokens 100% with US dollars or short-term Treasury bills, excluding corporate bonds and bank deposits, effectively turning stablecoins into automatic buyers of federal debt.

Analyst Shanaka Anslem Perera highlighted that this requirement, embedded in the technical regulation, creates ongoing demand for Treasury securities outside traditional auctions. Treasury Secretary Scott Bessent emphasized the Act's strategic importance, predicting stablecoins could reach $3 trillion by 2030, potentially saving the US $114 billion annually in borrowing costs. The fiscal impact is substantial, as a $3.5 billion increase in stablecoin market cap correlates with a 0.025% reduction in government borrowing costs, according to Bank for International Settlements findings.

The GENIUS Act also shifted regulatory oversight of stablecoin issuers from the Federal Reserve to the Office of the Comptroller of the Currency (OCC), an agency within the Treasury Department. This consolidation gives the Treasury significant influence over monetary conditions via digital asset policy. This policy shift is recognized by major institutions, such as JPMorgan, which began accepting Bitcoin as collateral, signaling acceptance of the new market structure.

(Source：BeInCrypto)