The Biggest Buyers of On-Chain US Debt Aren’t Where You’d Expect

Holders in Italy, Portugal, and Singapore every personal a bigger share of geolocated tokenized US Treasury worth than US holders, in keeping with Chainalysis. The US ranks fourth at 10.5%.

Its 2026 North America report argues that overseas stablecoin and tokenized Treasury patrons add demand for US debt.

A Retail Route Into a Wholesale Market

Tokenized Treasury debt grew 125% within the 12 months ending July 1, 2026, from $6.86 billion to $15.42 billion. US authorities debt was the most important real-world asset (RWA) on-chain, holding 42.8% of all tokenized RWA worth. BlackRock’s BUIDL fund retook the top spot amongst these merchandise in late August.

Most geolocated worth sits outdoors the US. Holders in Italy account for 29.9%, adopted by Portugal at 18.8% and Singapore at 18.2%.

Japanese holders make up 16.4% of geolocated holders, probably the most of any nation, however simply 0.4% of worth. Chainalysis says a small group of massive overseas holders drives the market, whereas a broader retail base builds smaller positions.

Tokenization shrinks the minimal funding and removes the necessity for a US brokerage account, the report says. That lets retail traders in Lisbon or Singapore purchase a wholesale instrument straight, the report provides.

These patrons have a tendency to carry tokenized Treasuries rather than post them as collateral, the report finds. Treasury lending exercise contracted 23% over the interval, the one RWA lending class to shrink.

“A holder outdoors the United States who buys a tokenized Treasury product is creating demand for US authorities debt quite than for their very own authorities’s,” Chainalysis added.

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Digital Dollars Take the Same Path

Stablecoins open a second channel for that overseas demand. Tokens from American issuers are backed largely by short-dated US government debt. As a consequence, greenback stablecoins purchased overseas additionally feed demand for that debt, the report notes.

Dollar tokens additionally dominate the market. They account for 99.1% of stablecoin order ebook quantity, whereas euro stablecoins maintain simply 0.45%. Euro tokens path even after the EU’s Markets in Crypto-Assets (MiCA) regulation improved circumstances for his or her issuers.

Circle’s USD Coin (USDC) provides a way of that scale. The US-based issuer reported $73.3 billion in circulation at quarter finish, up 19% from a yr earlier.

The desire for greenback tokens additionally holds in Canada. By June 2026, stablecoins made up 44% of Canadian greenback order ebook buying and selling, up from 30% a yr earlier. USDC led that share, whereas little buying and selling flowed to Canadian greenback stablecoins.

For Morva Rohani, govt director of the Canadian Web3 Council, that shift comes at Canada’s expense. She mentioned greenback stablecoin purchases construct demand for US authorities debt that Canadian debt may in any other case seize.

“This is a development that Canadian policy-makers are following carefully,” Rohani famous.

Ottawa has laid the groundwork for native options. Canada’s Stablecoin Act obtained Royal Assent on March 26, 2026, clearing the best way for Canadian greenback tokens. The full regime nonetheless depends upon supporting laws.

For now, Canadian greenback stablecoins stay tiny subsequent to their US greenback rivals. Chainalysis says native options will want market uptake, not simply new legal guidelines, to catch up.

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