Global Debt Surges to $365T as Stablecoins Fuel Growing Treasury Demand

TL;DR

• Global debt reached a record $365 trillion in the first half of 2026, adding $10 trillion in six months.
• Emerging-market debt increased by $6.5 trillion to $110 trillion, led by China.
• Meanwhile, stablecoin issuers are becoming an increasingly important source of Treasury demand, with the San Francisco Fed estimating that their short-term Treasury holdings could approach $400 billion by 2030.
  

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Global debt has climbed to a record $365 trillion, adding $10 trillion during the first half of 2026 as emerging-market borrowing, AI infrastructure spending and government financing push liabilities higher. At the same time, stablecoin issuers are becoming a visible source of demand for short-term U.S. Treasury securities, linking digital-dollar growth with traditional government funding markets.

Global Debt Reaches $365T

The Institute of International Finance reported that global debt surpassed $365 trillion in the first half of 2026, marking a $10 trillion increase over six months. The increase was less than half the $21 trillion rise recorded during the same period of 2025.

Emerging markets accounted for much of the expansion. Their combined debt increased by $6.5 trillion to $110 trillion, with China contributing the largest share. The IIF linked the broader increase to borrowing in emerging economies, AI-related infrastructure investment and military spending.

Stablecoins Reshape Treasury Demand

A September 28 study from the Federal Reserve Bank of San Francisco shows how the creditor base for U.S. government debt is changing. Foreign investors once represented more than half of Treasury holdings, but their share fell to roughly 30% by early 2026. Private investors have increasingly filled part of that gap, including stablecoin issuers.

Stablecoins require liquid reserves because users can generally redeem tokens for dollars. Short-term Treasury bills fit that role because they are highly liquid and carry relatively low credit risk. The San Francisco Fed projects that demand for short-term Treasuries could nearly double to about $400 billion by 2030 if the trend continues.

This relationship has become more relevant as U.S. regulation gives payment stablecoins a defined reserve framework. The GENIUS Act established federal requirements for eligible reserves, including short-dated Treasury bills and other approved assets. This creates a channel from digital-asset growth to Treasury demand.

For crypto markets, the development shows that stablecoins are increasingly connected to traditional financial infrastructure. The sector can generate demand for liquid government assets while giving users digital dollar exposure.

Global debt still depends heavily on conventional borrowing, but the funding landscape is evolving as new digital payment rails gain scale. As stablecoin adoption expands, digital assets may play a larger role in the flow of capital into short-term Treasury markets and dollar liquidity.