The Trump administration is considering an initiative to promote dollar-backed stablecoins overseas, according to Bloomberg, citing people familiar with the plans. The effort would involve joint ventures between the U.S. government and private-sector firms to push dollar-pegged stablecoins into foreign markets.
Multiple federal agencies could participate in the initiative, including the Treasury Department, the State Department, and the U.S. International Development Finance Corp., which coordinates government co-investment with private companies on projects aligned with American foreign policy goals.
Stablecoins are cryptocurrency tokens designed to maintain a steady 1:1 value with a currency by holding equivalent amounts in cash and short-term government debt as reserves. The strategy aims to achieve two goals: keep foreign users engaged with dollars and generate new buyers for U.S. Treasury securities.
The approach builds on the GENIUS Act, federal stablecoin legislation Trump signed last year that requires stablecoin issuers to back every token with reserves such as cash and short-dated Treasuries. Deputy Treasury Secretary Francis Brooke stated that stablecoin issuers already hold close to $200 billion in Treasury bills, a figure the administration would seek to increase.
Treasury Secretary Scott Bessent has previously characterized stablecoins as a tool to reinforce dollar dominance rather than threaten it. For users abroad sending remittances, purchasing goods priced in dollars, or living in regions with volatile local currencies, stablecoins provide financial stability. Direct U.S. government involvement in promoting these platforms would embed dollar strategy into the payment infrastructure people use daily.
The initiative reflects broader global competition in digital currencies. China has developed its own digital yuan, the European Central Bank is advancing a digital euro, and BRICS countries are exploring similar possibilities. However, these competitors generally exclude private business involvement in their monetary systems. China has officially banned stablecoins, and European Central Bank President Christine Lagarde has rejected euro-denominated stablecoins as an inefficient means of boosting the euro's global reach.
