The Trump administration is considering an initiative to promote the use of dollar-backed stablecoins overseas as Washington seeks to reinforce the dollar’s role as the world’s dominant reserve currency and potentially increase demand for U.S. government debt, Bloomberg has reported.
The proposal could involve U.S. government agencies forming joint ventures with private-sector companies to support stablecoin projects abroad, according to people familiar with the discussions. The Treasury Department and State Department could participate while the U.S. International Development Finance Corporation (DFC) is also being considered.
The initiative remains under discussion with no specific companies, countries, funding amounts, or launch timetable disclosed. Treasury and the White House did not comment to Bloomberg while the State Department and DFC declined to comment.
The push would link stablecoins more directly to U.S. economic and foreign policy. Dollar-backed stablecoins typically hold reserves in cash and short-term U.S. government debt, meaning wider circulation could create additional demand for Treasury securities.
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The proposal builds on the administration’s broader support for dollar-backed stablecoins.
The GENIUS Act established a federal regulatory framework requiring compliant payment stablecoins to maintain reserves against their tokens including permitted holdings of U.S. dollars and short-term Treasury securities. Treasury officials have also linked stablecoin growth to strengthening the dollar’s international role and expanding demand for U.S. debt.
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The potential overseas initiative comes as other major economies develop alternative digital-payment infrastructure including China’s digital Yuan and the European Central Bank’s digital Euro project.
For Washington, stablecoins are increasingly being viewed not only as a crypto-market product but as a potential distribution network for the dollar.
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