For the first time in history, foreign private investors now hold more U.S. Treasury securities than foreign central banks.
This reflects a structural shift in the global financial system and a declining role of public institutions as key holders of U.S. debt.
Such dynamics may increase market volatility, as private investors tend to act less predictably than central banks.
At the same time, the rapid growth in USD stablecoin issuance is creating a new class of quasi-dollar holders that also accumulate significant volumes of U.S. Treasuries as reserves.
This strengthens private-sector demand for U.S. government debt outside the traditional banking and sovereign framework, effectively expanding the shadow dollar system.
