Trump Administration Weighs Overseas Expansion of Dollar Stablecoins to Reinforce Dollar Dominance

The Trump administration is considering ways to expand the use of dollar-backed stablecoins overseas to reinforce the dollar’s status as the world’s reserve currency.

Bloomberg reported on September 23 that US officials are discussing a plan to establish joint ventures with private companies to support stablecoin businesses abroad. The goal is to preserve the dollar’s influence in international payments and boost demand for US Treasuries.

The plan could involve several federal agencies, including the Treasury Department and the State Department. The US International Development Finance Corp., which works with private companies to support US foreign-policy objectives, is also under consideration as a participant. The specific business structure and timeline have not been disclosed.

Dollar-backed stablecoins typically hold reserves such as cash and short-term US Treasuries. Broader overseas adoption could therefore increase stablecoin issuers’ purchases of US government debt.

Trump signed the GENIUS Act last year, setting reserve-asset requirements for stablecoin issuers. Treasury Secretary Scott Bessent has also said growth in the stablecoin market could help strengthen the dollar’s international standing.

The proposal comes as major economies speed up development of their own digital payment infrastructure. China is participating in Project mBridge, a multicentral bank digital currency payment network that uses the digital yuan, while the European Central Bank is developing a digital euro and pursuing projects to connect blockchain-based markets to existing payment systems.