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

A Chainalysis report reveals that tokenized U.S. Treasury value surged 125% to $15.42 billion in the year ending July 1, 2026, establishing U.S. debt as the largest on-chain RWA category. Notably, investors in Italy, Portugal, and Singapore hold larger shares of this value than U.S.-based participants, with Italy alone accounting for 29.9%. This trend highlights how tokenization democratizes access to wholesale financial instruments by removing traditional brokerage barriers for international retail investors. The data indicates that foreign demand for these assets, alongside the dominance of U.S. dollar-backed stablecoins, effectively channels global capital into U.S. government debt. While dollar-pegged stablecoins command 99.1% of order book volume, euro-denominated alternatives remain marginal despite the implementation of MiCA. Furthermore, the report observes a contraction in Treasury lending activity, suggesting that holders prioritize long-term asset retention over collateralization. This shift in capital flows has prompted policy discussions in nations like Canada, where officials are monitoring the impact of dollar-stablecoin adoption on domestic debt demand.