Stablecoin issuers now hold over $120 billion in US government debt, more than many sovereign reserve managers. After regional banking stress and regulatory pressure on custodial risk, the industry pivoted towards a pure Treasury standard. Cash buffers and bank deposits got replaced with T-bills, reverse repos, and government only funds. The US Treasury projects these holdings could hit $1 trillion by 2028, making 2026 the year stablecoins become a visible, predictable buyer base. However, after two years of expansion, growth rates have started to flatten. Front end yields will move lower as the Fed continues to cut, trading activity may cool after a volatile 2025, redemptions tend to pick up when cash becomes more attractive in traditional savings products, and T-bill roll yields for issuers will drift down as coupons reset. None of this changes the bigger picture. Stablecoins are now plugged directly into real funding markets, so their supply responds to front end rates and cash demand. Short term supply can fluctuate while the long term trajectory stays intact.(Delphi Digital)