Stablecoin providers now hold nearly $200 billion in short-dated U.S. government debt, highlighting the scale of reserves tied to Treasury markets. According to NS3.AI, money-market mutual funds absorbed approximately 85 percent of the latest increase in Treasury-bill supply.

Treasury said net bill supply grew by more than $550 billion in July and August. Stablecoin reserves can be invested through money-market funds and repurchase agreements, which helps explain the demand for short-dated government debt.