The $USDC United Kingdom has surpassed China to become the second-largest foreign holder of U.S. Treasury securities.
UK Holdings: $779.3 billion
China Holdings: $759.0 billion
Top Holder: Japan still holds the most, at $1.15 trillion
🔍 Why This Matters:
China’s Decline in holdings reflects ongoing geopolitical tensions, efforts to diversify reserves, and reduce reliance on the U.S. dollar.$USDC
The UK’s increase may not entirely reflect UK-origin investment—it could include transactions channeled through London, a major financial hub.
This shift suggests changing dynamics in global capital flows and central bank strategies.
🪙 Crypto Angle:
Though the article is about traditional finance, it has implications for crypto:
A move away from U.S. Treasurys could signal increasing interest in alternative stores of value, such as Bitcoin and other crypto assets, especially by nations and institutions wary of dollar exposure.