The United States continues to hold the largest national debt in the world, which has surpassed $36 trillion. A major portion of this debt is funded through U.S. Treasury securities, which are bought by foreign governments and investors. Among the largest US Treasury holders, Japan leads the list, followed by China and the United Kingdom. As of February 2025, Japan holds $1.13 trillion in U.S. Treasuries, slightly down from $1.15 trillion a year earlier. Additionally, China’s treasury holdings remain steady at $784.3 billion, compared to $775 billion one year ago.
Key Takeaways
- The top 15 largest US Treasury holders collectively own approximately $6.5 trillion in U.S. securities in 2025.
- Japan remains the top holder, with $1.13 trillion, followed by China and the United Kingdom.
- Treasury securities are the primary way the U.S. government borrows from foreign countries and investors to finance its debt.
What Are Treasury Securities and How Do They Work?
Why do countries invest in U.S. Treasuries, and what does this mean for the U.S. economy? Treasury securities are U.S. government-issued debt instruments that are often purchased by foreign governments and investors to earn interest over time. They are a type of safe interest-bearing asset backed by the U.S. government. The U.S. government uses these securities to fund its public spending related to defense, healthcare, and infrastructure. The trust in these instruments helps the U.S. borrow at low interest rates, even while carrying massive debt.
The Largest US Treasury Holders in 2025
The list of the largest US Treasury holders is dominated by major global economies. The table below shows the top 15 countries with the largest holdings of U.S. Treasury securities as of February 2025.
| Rank | Country | U.S. Treasury Holdings (2025) |
|---|---|---|
| 1 | 🇯🇵 Japan | 1.13 trillion |
| 2 | 🇨🇳 China, Mainland | 784.3 billion |
| 3 | 🇬🇧 United Kingdom | 750.3 billion |
| 4 | 🇰🇾 Cayman Islands | 417.8 billion |
| 5 | 🇱🇺 Luxembourg | 412.5 billion |
| 6 | 🇨🇦 Canada | 406.1 billion |
| 7 | 🇧🇪 Belgium | 394.7 billion |
| 8 | 🇫🇷 France | 354.0 billion |
| 9 | 🇮🇪 Ireland | 339.0 billion |
| 10 | 🇹🇼 Taiwan | 294.8 billion |
| 11 | 🇨🇭 Switzerland | 290.8 billion |
| 12 | 🇭🇰 Hong Kong | 273.8 billion |
| 13 | 🇸🇬 Singapore | 260.0 billion |
| 14 | 🇮🇳 India | 228.0 billion |
| 15 | 🇧🇷 Brazil | 207.3 billion |
The data is sourced from the U.S. Department of the Treasury.
Top Foreign Holders of U.S. Treasury Securities
These countries account for the majority of foreign-held U.S. debt and play a significant role in global finance.
🇯🇵 Japan
Japan holds the massive $1.13 trillion in US treasury assets, which ranks it at the top spot among the largest US Treasury holders. Although the country’s holdings have slightly decreased from $1.15 trillion a year earlier, it still maintains the top position globally. Japan’s central bank and institutional investors purchase the U.S. reasuries to help manage the exchange rate and maintain stable foreign reserves.
🇨🇳 China
China is the second-largest holder of US treasuries after Japan. The country holds $784.3 billion in US Treasuries in 2025, which is nearly unchanged from $775 billion a year ago. U.S.–China relations have remained strained amid ongoing trade tensions and economic rivalry. Recently, the U.S. has imposed tariffs of up to 145% on Chinese imports, while China responded with 125% tariffs on American goods. These rising trade tensions may influence how China manages its U.S. bond holdings in the future.
China has already been reducing its U.S. Treasury holdings over the years. From a peak of around $1.3 trillion in 2013, its US treasury bond holdings have declined to approximately $780 billion as of February 2025.
U.S. vs. China: GDP Output Comparison from 2014 to 2025
🇬🇧 United Kingdom
The UK is a major global investor and holds a massive $750.3 billion of US treasury securities. This marks an increase from $711.5 billion in the previous year. The UK’s position among the largest US Treasury holders shows its stable financial system and strategic investments in U.S. markets.
🇰🇾 Cayman Islands
With $417.8 billion in holdings, the Cayman Islands is the fourth largest holder of U.S. Treasury securities. It is a major offshore financial center located in the western Caribbean Sea. This major holding is largely due to hedge funds and private financial institutions operating through Cayman-based structures. Additionally, the country’s holdings have risen significantly from $309.9 billion in early 2024.
🇱🇺 Luxembourg
Luxembourg is a major European financial hub, with around 25% of its GDP coming from the financial sector. The country holds the fifth largest $412.5 billion in U.S. Treasuries, up from $355.8 billion in 2024. Luxembourg is also among the wealthiest nations in the world due to its GDP per capita, which currently ranks as the highest globally. Additionally, it is home to over 120 international banks and numerous investment funds.
Several other countries also hold significant amounts of U.S. Treasury securities, including Canada, Belgium, France, and Ireland. Canada holds $406.1 billion, which reflects its strong economic ties with the United States.
Ireland stands at $339 billion, while Taiwan and Switzerland each hold around $290 billion. Hong Kong and Singapore follow closely with $273.8 billion and $260 billion, respectively. Even India and Brazil, two growing economies, maintain substantial holdings of US securities at $228 billion and $207.3 billion, respectively.
Conclusion
Collectively the top 15 countries hold a combined approximately $6.5 trillion in U.S. Treasury securities as of February 2025. Japan alone holds more than $1 trillion of US treasury bonds, followed by China and Japan. The U.S. uses these securities as a way to borrow money to finance its national debt. By selling Treasury bonds to foreign countries and investors, the government raises funds to cover budget deficits and finance various public projects.
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