Washington eyes stablecoin joint ventures abroad — because nothing says "reserve currency" like teaching the world to swipe USD onchain 💸

The Trump administration is weighing initiatives to promote dollar-backed stablecoins overseas through joint ventures with private companies and federal agencies, according to a Bloomberg report citing people familiar with the plans. The effort is intended to reinforce the U.S. dollar's status as the leading global reserve asset and to increase demand for U.S. Treasuries, a common reserve asset backing dollar-pegged tokens.

The Treasury Department, the State Department and the U.S. International Development Finance Corporation (DFC) could participate in the proposed ventures, with potential private-sector partners including stablecoin infrastructure providers Circle and Paxos. The administration's push comes as other nations advance their own digital payment infrastructure: China's digital yuan is among the central bank digital currencies connected to Project mBridge, a cross-border CBDC settlement platform, while the European Central Bank is preparing a 12-month digital euro pilot expected to begin in the second half of 2027.

Senior U.S. officials have repeatedly linked stablecoin growth to dollar dominance. In February 2025, White House crypto and AI czar David Sacks said stablecoins could "extend the dollar's dominance internationally" and potentially generate trillions of dollars in additional demand for U.S. government debt. Treasury Secretary Scott Bessent, speaking in July 2025, said the GENIUS Act, which established a federal regulatory framework for payment stablecoins, could strengthen the dollar's status as the global reserve currency, expand access to the dollar economy and increase demand for U.S. Treasurys. On Aug. 17, the Treasury issued a notice of proposed rulemaking seeking public comment on provisions governing the issuance, offering and sale of payment stablecoins, with Bessent stating the rules would help "cement" the U.S. dollar's status as the world's reserve currency.

Dollar-backed stablecoins have grown into a significant slice of U.S. debt holders. USDT and USDC, the top two stablecoins, are pegged 1:1 to the U.S. dollar and together account for almost 90% of the total stablecoin market value of $292.49 billion. With aggregate holdings approaching $200 billion, stablecoin issuers are already among the top 20 holders of U.S. sovereign debt, trailing only the reserves of several major nations. Under the GENIUS Act, issuers are required to hold reserves including dollars and short-term Treasuries.

International financial bodies have warned that wider adoption of dollar-pegged stablecoins carries risks for emerging economies. The International Monetary Fund and the Bank for International Settlements have cautioned that USD-pegged stablecoins could accelerate capital flight from emerging markets, weaken domestic currencies and limit policymakers' control over financial flows. Because stablecoins move over blockchains, they bypass traditional banking channels, making transactions harder for central banks and governments to monitor.