Italy, Portugal, Singapore Lead Foreign Holders of Tokenized US Debt, Chainalysis Reports

Holders in Italy, Portugal, and Singapore each control a greater share of geolocated tokenized US Treasury value than US-based holders, Chainalysis data shows. The US sits fourth with a 10.5% share.

Chainalysis's 2026 North America report contends that overseas buyers of stablecoins and tokenized Treasuries create additional demand for US government debt.

A Retail Route Into a Wholesale Market

Over the year to July 1, 2026, tokenized Treasury debt expanded by 125%, rising from $6.86 billion to $15.42 billion. Among tokenized real-world assets (RWAs), US government debt was the largest category, accounting for 42.8% of total value. In late August, BlackRock's BUIDL fund reclaimed the leading position among these offerings.

The majority of geolocated tokenized Treasury value is held abroad. Italian holders represent 29.9%, Portuguese holders 18.8%, and Singaporean holders 18.2%.

Japanese holders account for 16.4% of geolocated holders – the highest share of any nation – yet only 0.4% of value. According to Chainalysis, a handful of big foreign holders dominate the market, while a wider retail audience accumulates smaller amounts.

Tokenization lowers the minimum buy-in and eliminates the requirement for a US brokerage account, the report notes. This enables retail investors based in Lisbon or Singapore to purchase a wholesale instrument directly, it adds.

These investors typically keep tokenized Treasuries rather than using them as collateral, the report finds. Lending activity for tokenized Treasuries fell 23% during the period, making it the only RWA lending segment to decline.

“A holder outside the United States who buys a tokenized Treasury product is creating demand for US government debt rather than for their own government’s,” Chainalysis added.

Digital Dollars Take the Same Path

Stablecoins provide another avenue for that overseas demand. Tokens from US-based issuers are mostly collateralized by short-term US government debt. Consequently, dollar stablecoins purchased outside the US also boost demand for that debt, the report observes.

Dollar-denominated tokens also lead the market. They make up 99.1% of stablecoin order book volume, compared with just 0.45% for euro stablecoins. Euro tokens lag despite the EU's Markets in Crypto-Assets (MiCA) regulation creating better conditions for their issuers.

Circle's USD Coin (USDC) illustrates the scale. The US-based firm reported $73.3 billion in circulation at the end of the quarter, a 19% rise from a year earlier.

The tilt toward dollar tokens is also evident in Canada. By June 2026, stablecoins accounted for 44% of Canadian dollar order book trading, up from 30% a year prior. USDC dominated that portion, while Canadian dollar stablecoins saw minimal trading.

Morva Rohani, the Canadian Web3 Council's executive director, sees that trend as detrimental for Canada. She said that buying dollar stablecoins creates demand for US government debt that could otherwise go to Canadian debt.

“This is a trend that Canadian policy-makers are following closely,” Rohani noted.

The Canadian government has prepared the ground for domestic alternatives. The country's Stablecoin Act received Royal Assent on March 26, 2026, paving the way for Canadian dollar tokens. However, the complete regulatory framework still requires supporting rules.

At present, Canadian dollar stablecoins are minuscule compared to their US dollar counterparts. Chainalysis notes that for local options to catch up, market adoption is necessary in addition to legislative changes.