In recent years, U.S. dollar-pegged stablecoin issuers have emerged as significant players in the U.S. Treasury market. Collectively, they hold over $120 billion in U.S. government debt, positioning them among the top 20 holders globally.

Notably, Tether, the largest stablecoin issuer, held approximately $98.5 billion in U.S. Treasuries as of March 2025, ranking it as the 21st-largest foreign holder, surpassing countries like Germany and South Korea.

This substantial demand from stablecoin issuers has provided a new source of support for the U.S. Treasury market, especially as traditional foreign holders like China and Japan have reduced their holdings.

For example, China's holdings decreased to $765.4 billion in March 2025, down from $821.8 billion in March 2024 — a $56.4 billion reduction over 12 months, continuing a multi-year trend of divestment from U.S. sovereign debt.

This shift is part of a broader pattern where large foreign holders — including China, Japan, and oil-exporting nations — have been net sellers of U.S. Treasuries, placing structural pressure on yields. In this context, the rise of stablecoin issuers as reliable, price-insensitive buyers has become a stabilizing force in the Treasury market.

‍

Crown's vision: strengthening Brazil's sovereign debt market

Drawing inspiration from the U.S. scenario, Crown aims to become a significant participant in Brazil's sovereign debt market.

By issuing BRLV, a yield-bearing stablecoin backed exclusively by Brazilian government bonds, Crown channels on-chain capital into Brazilian Treasuries. Just as U.S. stablecoin issuers have become major buyers of U.S. debt, Crown expects to become one of the largest on-chain buyers  and, ultimately, one of the largest buyers full stop of Brazilian sovereign debt.

This model directly supports Brazilian government and central bank priorities by:
- Enhancing demand for sovereign debt: Increased, stable demand for Brazilian Treasuries can help lower funding costs and contribute to fiscal stability.
‍
- Promoting financial inclusion: Digital access to safe, yield-generating government-backed assets broadens participation in Brazil’s financial system.
‍
- Strengthening monetary policy transmission: Deepening the sovereign debt market improves the efficiency of monetary policy, while also supporting currency stability and liquidity.
‍

Conclusion

The rise of stablecoin issuers as major holders of U.S. Treasuries is not a curiosity — it’s a structural evolution in how the financial system works. Digital assets are becoming part of sovereign debt demand at scale.

Crown seeks to replicate this dynamic in Brazil, aligning the growth of digital financial infrastructure with the long-term stability and strength of the Brazilian sovereign debt market.

‍