We examine China’s treasury bond market as a cornerstone of financial stability and renminbi internationalization. It contrasts China’s Transparent Holding System (THS) with the US’s Indirect Holding System (IHS) across transaction, clearing, and settlement stages. Under the THS, intermediaries never acquire ownership, same-day (T + 0) settlement is routine, and holdings are recorded directly, yielding operational efficiency and lower counterparty risk. The multi-layered US model, by contrast, depends on intermediaries, a T + 2 cycle, and complex custody chains that heighten settlement and transparency risks. Analysis shows that the THS fosters regulatory oversight, supports cross-border investor access, and provides a robust platform for RMB use in trade and investment. Policy recommendations are threefold: (i) preserve and refine THS architecture rather than replicate IHS complexity; (ii) codify transparent, rapid-settlement standards as international benchmarks; and (iii) build RMB-denominated cross-border payment rails independent of legacy networks such as SWIFT. These measures advance financial efficiency, market infrastructure, and institutional trust—transforming the treasury market from a potential point of fragility into a vehicle for global financial resilience.