Stablecoin Issuers Buy Bitcoin Using US Treasury Yields, Raising Concerns

Stablecoin issuers in the US are increasingly using US Treasury yields to purchase Bitcoin, a practice that has raised concerns among experts. The influence of stablecoin issuers in the US Treasury market is growing, with Tether, the issuer of USDT, planning to launch a US-only stablecoin by 2025. This move aims to position stablecoins as strategic financial tools under the Trump administration. The US Treasury projects that stablecoins could reach a $2 trillion market by 2028, attracting more players and potentially influencing the broader financial system.
However, the growing influence of stablecoin issuers in the Treasury market has sparked concerns, particularly regarding their use of Treasury yields to buy Bitcoin. This practice could undermine US government reserves and initiatives like the proposed US Strategic Bitcoin Reserve, which aims to bolster
of the pioneer crypto. Bitcoin pioneer Max Keiser has voiced concerns over the growing influence of stablecoin issuers in the US Treasury market, warning that their use of government debt instruments to back digital dollars may have broader implications for the global financial system.As of Q1 2025, Tether reported holding nearly $120 billion in short-term US Treasury securities and reverse repos, making it one of the largest non-sovereign holders of American government debt. Circle, the issuer of USDC, disclosed more than $22 billion in Treasury bills in a February 2025 attestation. These holdings collateralize dollar-pegged stablecoins, helping issuers maintain liquidity and trust. The issuers benefit from the interest income generated by the bonds. While this practice is common and legal, Keiser contends it contributes to deeper systemic issues tied to fiat currency dynamics.
“This is exactly why the stablecoin issuers are buying Bitcoin, this is called a speculative attack on the US dollar. Feeding the debt spiral with fiat stablecoins, buying treasury bills, and then investing the interest into Bitcoin, allowing the stablecoin issuers to buy billions in Bitcoin for free,” Keiser told BeInCrypto. Stablecoin issuers purchase US debt on secondary markets and earn interest, which they may or may not deploy into digital assets like Bitcoin. Keiser is critical of the broader financial architecture underpinning stablecoins, stating that “issuing new stablecoins backed by US T-bills printed out of thin air is not a monetary system, but a financial hologram.”
Keiser elaborated on what he sees as the long-term consequences of this model, describing it as a speculative attack by private banks and financial repression, pushing rates down as ‘malinvestments’ increase. His critique also extends to the broader outlook for the US dollar, which he believes is in a state of decline. Keiser also highlighted the emerging trend of high-profile investors and technologists using artificial intelligence (AI) and novel corporate strategies to increase Bitcoin exposure. He referenced Strategy Executive Chair Michael Saylor and investor-turned-politician Vivek Ramaswamy, who are using AI to invent novel security structures to maximize the Bitcoin Treasury model. Keiser believes such strategies could push Bitcoin’s market value even higher and extend the extraordinary compounding rates of the past.

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