An article, put out by one of the ubiquitous cryptocurrency websites, reported on Sept. 8 that stablecoin use is declining internationally ("has stalled"), led by falls in the amounts outstanding of the two top stablecoins, Tether, Inc.’s USDT and Circle, Inc.’s USDC. Stablecoins are cryptocurrencies widely advertised as building up international holdings of U.S. dollars, since the issuers of them, like Tether, Inc., are supposed to buy and hold Treasury securities (i.e., short-term Treasury Bills) as backing for each stablecoin they sell. Actually, it doesn’t quite work that way, as the issuers can expand their apparent dollar value by fees, “bonuses,” and “prizes” which imitate the role of interest on real dollar deposits; in addition, their “Treasury backup” is often really repurchase agreements to buy Treasuries, rather than Treasuries in hand.

Says kucoin.com: “Initial expectations that stablecoin issuers would become major purchasers of U.S. debt have diminished amid weaker demand. Tether’s USDT declined by nearly $3 billion in [the first half of 2026], with Circle’s USDC showing a similar drop…. Analysts say stablecoins will not provide quick relief.” Its chart shows total global use of the leading stablecoins “flatlining” (rhymes with “declining") since January 2026, just when Treasury Secretary Scott Bessent confidently predicted stablecoins would grow explosively into a $3 trillion market for Treasury securities. Actually, USDT and USDC currently add up to about $250 billion.