How Digital Currency Changed the Treasury Market: A New Trend of $109 Billion

Introduction: New Regulations, New Purchases

A significant legal change has emerged after 2025. Under the GENIUS Act, institutions issuing stablecoins are now required to follow a new rule: for every digital token issued, they must hold US Treasury securities of equivalent value.

The outcome of this legal framework is clear. From July to November 2025, stablecoin issuers purchased a total of $109 billion in Treasury bills within just 120 days. This amount is not only within legal bounds—it is transforming the entire government debt market.

Market Snapshot: How Big Has the Stablecoin Market Become

The stablecoin market is rapidly expanding. In July 2025, it was valued at $200 billion, which grew to $309 billion by November. The direct implication is—an average of $908 million in Treasury securities is being purchased daily.

Government officials and economic analysts estimate that this market could reach $3 trillion by 2030. This is not just a number—it signifies a major shift in the entire financial system.

Benefits for the Government

Continuous purchases of Treasuries through stablecoins are lowering the government’s borrowing costs. Analyses from institutions like the Bank for International Settlements suggest that if this trend continues, the government could save up to $114 billion annually by 2030.

As the stablecoin market cap increases, the size and structure of Treasury auctions are also changing. A robust, stable buyer has emerged who will regularly purchase Treasuries.

Where Monitoring Is Happening: From Fed to Treasury

A significant organizational change has also taken place. Monitoring of stablecoin issuers is no longer the responsibility of the Federal Reserve. It is now handled by the Treasury’s Office of the Comptroller of the Currency (OCC).

This shift matters because it introduces different policy priorities for digital asset regulation. Under OCC, concerns related to financial security and Treasury management become more prominent. New guidelines are being developed regarding reserve quality, audit standards, and transparency, with public comments being solicited.

What Risks Exist? Warnings That Cannot Be Ignored

This new system also brings several challenges.

Liquidity Risk: If a large-scale withdrawal of stablecoins occurs simultaneously, liquidity problems could arise in the market. When all reserves are tied up in short-term Treasuries, withdrawals during a crisis become difficult.

All Eggs in One Basket: If all stablecoin companies invest in similar assets like ( T-Bills), any shock to the market could have a much deeper impact.

Impact on Monetary Policy: When government debt purchases are primarily in the hands of stablecoin issuers, unexpected pressures could develop on central bank operations.

Trust and Transparency: Regulators will find it challenging to ensure that reserve management remains reliable at all times. Any lack of transparency could weaken the entire system.

Impact on the Global Market

This change is not limited to the United States.

Dollar Strength: The global use of digital dollar-based stablecoins will further strengthen the demand for the US dollar. It deepens the dollar’s international dominance.

Responses from Other Countries: Central banks in Japan, Europe, and India are reconsidering their digital currency strategies. Questions are also being raised about diversifying their foreign exchange reserves.

International Capital: If foreign investors seek dollar exposure through stablecoins, additional pressure on Treasuries will increase, potentially altering global funding conditions.

The Next Five Years: Two Possible Paths

Growth Path: If infrastructure remains strong, audit standards are maintained, and stablecoin usage continues to grow, reaching $3 trillion is feasible. This would significantly reduce the cost of government debt.

Crisis Path: If weaknesses in reserve management or liquidity emerge, systemic risks could deepen. Regulatory authorities might then take strict measures, potentially halting market development.

What Investors Should Watch

Those looking to invest in this evolving landscape should pay attention to:

• Reserve reports and audit certificates of stablecoin companies
• Profile and stability of buyers in Treasury auctions
• New policies and public comments from OCC and Treasury
• Short-term Treasury spreads and liquidity indicators

Final Thoughts: Benefits and Risks Both

$109 billion in Treasury purchases is a major event. It demonstrates how rapidly digital finance is changing. In the coming years, it will profoundly impact the government debt market, borrowing costs, and the dollar’s global position.

The benefits are clear: lower government borrowing costs, a steady buyer in Treasuries, and expansion of digital payment systems. But the risks are real—liquidity shocks, market concentration, and unexpected pressures on monetary policy.

Policy makers, large investors, and industry players must adopt a balanced approach. Transparency, timely regulation, and long-term thinking are essential to ensure that this new path of Treasury purchasing remains stable and serves the public interest.