What if the most powerful buyer of U.S. debt… isn’t a country?
What if it’s a crypto coin?
And what if Donald Trump is totally okay with that?
Something strange is happening behind the scenes of global finance. It’s digital. It’s fast. And it might just be what’s keeping the U.S. economy afloat.
Let’s talk about why Trump is suddenly all in on stablecoins —
And how they could be doing more for the U.S. dollar than anyone expected.
Table of Contents
💼 Trump Steps Into Crypto
1. A new story linked Trump to stablecoins.
2. He said he would support “the development and growth of legal, dollar-based stablecoins” to help protect the dollar’s dominance around the world.
3. There’s also talk that he’ll sign an executive order to push that support forward.
🏛 Not Just Trump — Congress Is In Too
4. This isn’t just a personal Trump decision.
5. In March 2025, the U.S. Senate Banking Committee passed a stablecoin bill called the GENIUS Act.
6. And by August, there’s a strong chance lawmakers from both parties will pass more legislation to support the stablecoin industry.
🪙 The Two Giants: Tether vs. Circle
7. Right now, the stablecoin market is mostly split between two players — Tether and Circle.
8. But Washington doesn’t see them the same way.
9. Tether is connected to Chinese blockchain infrastructure.
10. Circle, meanwhile, moved its headquarters to New York and plans to go public in the U.S. later this year.
11. Thanks to the GENIUS Act, Tether will need to take extra steps — like releasing monthly audit reports — if it wants to keep doing business in the U.S.
12. Because Tether is still the biggest name in stablecoins, it’s unlikely the U.S. will cut it off completely.
13. A more likely path: tighter oversight, not a ban.
💵 Stablecoins + U.S. Debt = Strange New Allies
14. So why does Trump care so much about stablecoins?
15. The key reason is the U.S. government’s financial situation — it’s expected to run over $1 trillion in budget deficits every year for the next 10 years.
16. When deficits go up, the government issues more Treasury bonds.
17. The more bonds on the market, the lower their prices go.
18. And when prices drop, interest rates rise.
19. This is where Tether becomes a factor.
20. Tether is designed so that 1 Tether always equals 1 U.S. dollar.
21. That means whenever someone trades dollars for Tether, Tether has to hold onto $1 in real assets.
22. And what does it do with that dollar?
23. Most of the time, it uses it to buy U.S. Treasury bonds.
24. So, whenever new Tether is issued, it increases demand for Treasuries.
📈 Big Buyers, Big Impact
25. It might sound like a stretch to say crypto affects U.S. interest rates.
26. But the numbers speak for themselves.
27. As of September 2024, Tether held $102.5 billion in U.S. Treasury bonds.
28. That’s about the same amount held by countries like Germany.
29. For comparison, Germany holds about $101 billion.
30. So yes — a private crypto company is holding as many Treasuries as major national central banks.
31. At the same time, China has been cutting back on its U.S. bond holdings.
32. In 2022, China held $870 billion in Treasuries.
33. By September 2024, that number dropped to $764.4 billion.
34. That’s a $105.6 billion drop in two years.
35. Meanwhile, Tether increased its holdings by $101.1 billion — almost the same size.
36. Tether might only rank 19th globally in total holdings,
37. But in Q3 2024, it was the third-largest buyer of newly issued U.S. Treasury bonds.
38. And it’s not alone.
39. Stablecoin competitor Circle reportedly bought over $40 billion in Treasuries in 2024.
40. When stablecoins like Tether and Circle keep buying up Treasuries, it helps support bond prices.
41. That helps keep interest rates steady, especially the 10-year Treasury rate — which is something Trump is closely watching.
42. Even if people debate how stable stablecoins really are,
43. It’s clear they’re playing an increasingly important role in the U.S. debt market.
When Trump Bets on Bonds, You Know It’s Real
Trump seems dead serious about keeping U.S. Treasury prices steady. He’s not just tweeting. He’s aligning crypto, policy, and global markets around one goal: Don’t let the dollar slip.
But here’s the real tension: What happens when policy wants one thing and the market wants another? Who wins that tug-of-war — the pen or the price? We’re entering a moment where traditional economics and digital assets are starting to wrestle for influence. And let’s be honest — nobody’s quite sure who walks out on top.
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