The gross federal debt of the United States exceeds $39 trillion. The share of foreign investors in US Treasuries has dropped from nearly 49% in 2011-2012 to approximately 30-32% today, with Japan, the UK and China progressively reducing their respective positions of $1.18 trillion, $866 billion and $683 billion. Tether, the USDT stablecoin issuer based in the British Virgin Islands, emerged as one of the top foreign net buyers of US Treasuries in 2024 with approximately $33.1 billion in net purchases. This creates a feedback loop: the global growth of USDT adoption drives demand for US securities, partially offsetting the pullback from traditional buyers. If the stablecoin bills currently under discussion in Congress pass, the crypto industry could become an even more significant structural buyer of US debt.
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