Adam Back Says Stablecoins Now Rival Nations’ Treasury Holdings

In an October 7, 2025 Forbes interview, Bitcoin OG and Hashcash founder Adam Back said stablecoins now act as a modern replacement for wire transfers. He also highlighted a striking data point.

Issuers such as Tether and Circle hold more US Treasuries than some major nations. For beginners and investors. This signals how digital dollars are reshaping payments and government bond markets at the same time.

From Exchange Tool to Global Payments Rail

Stablecoins are tokens designed to track the value of a fiat currency, usually the US dollar. They aim to keep a steady price while settling on blockchains around the clock. Back explained that once people experienced near instant transfers at low cost, adoption spread quickly.

A real world example shows why. A freelancer in Latin America working for a US company can receive a stablecoin payment in minutes. Then, convert it locally. Traditional wires might take days and charge high fees. As a result, stablecoins have become competitive for remittances and business payments.

This shift reflects a broader trend. In recent years, stablecoin transaction volumes have reached trillions of dollars annually. Much of that activity comes from payments, payroll, and settlement rather than speculation. As usage grows, issuers must hold safe reserves to back their tokens.

Why Stablecoin Issuers Buy Treasuries

To back each token, major issuers hold reserves like cash and short term US Treasuries. These are government bonds seen as low risk and liquid. Back noted that this reserve strategy has turned stablecoin firms into major buyers of US debt.

Credible data supports the claim. Public disclosures show that leading issuers collectively hold hundreds of billions of dollars in Treasuries. Surpassing the holdings of some sovereign nations. This creates what Back called an entirely new business model. Stablecoin companies earn interest on reserves while providing fast digital dollars to users worldwide. This matters in two ways.

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