Crypto
Home›Crypto›Stablecoins›Money-market funds bought most of US T-bill surge as s…
Money-market funds bought most of US T-bill surge as stablecoins hold
The Treasury estimates money-market mutual funds took about 85% of the roughly $550 billion net increase in Treasury bill supply in July and August.
Money-market mutual funds absorbed the bulk of the US government's latest Treasury bill supply increase in July and August, Treasury said in remarks delivered Sept. 22 by Deputy Treasury Secretary Francis Brooke, according to CryptoSlate.
Treasury reported that net bill supply grew by more than $550 billion over those two months, an increase of about 8%, and it estimated that money funds took roughly 85% of the additional supply, giving traditional cash managers the clearest claim to the marginal demand behind the issuance wave.
Stablecoin issuers remain significant holders of short-dated government debt, Treasury said, with stablecoin providers holding nearly $200 billion in Treasury bills and other close-to-maturity securities. The outlet notes, however, that the stablecoin number is a stock of holdings, while the money-fund figure measures purchases tied to that specific summer supply increase.
CryptoSlate also points out that the categories can overlap because stablecoin reserves may be invested through government money-market funds and repurchase agreements, citing issuer disclosures. It adds that documented incremental buying through 2026 has come mainly from money funds and the Federal Reserve, with foreign investors returning in July.