China and Japan significantly reduced their U.S. Treasury holdings in March due to the Middle East war, which caused energy price surges and currency depreciation, forcing central banks to liquidate dollar reserves.
China and Japan significantly reduced their U.S. Treasury holdings in March due to the Middle East war's impact on energy prices and local currencies. Overall foreign holdings fell as central banks liquidated dollar reserves for currency intervention.
Tether, the world's largest stablecoin issuer, reported approximately $1.04 billion in net profit for Q1 2026, with its reserve buffer reaching a record $8.23 billion. The company claims to hold nearly $192 billion in reserve assets, including $141 billion in U.S. Treasuries, $20 billion in physical gold, and $7 billion in Bitcoin. The Q1 figures were verified by an Italian service rather than a Big Four accounting firm, though KPMG has begun its first-ever full audit.
