Washington is betting that dollar-pegged stablecoins can extend American monetary influence into every corner of the digital economy.
The Trump administration is weighing overseas stablecoin projects with private firms to support the dollar and increase Treasury demand, Bloomberg reported Wednesday, citing people familiar with the plans.
The effort could involve several federal agencies, including the Treasury Department and State Department. The US International Development Finance Corp. (DFC), which works with private-sector partners to advance US foreign policy objectives, may also take part in the ventures, according to the report.
Stablecoin issuers generally maintain reserves in cash and short-term government debt to back their tokens. Stablecoins have become increasingly popular among financial firms, and most of the tokens currently in circulation are pegged to the US dollar.
The initiative would follow the GENIUS Act, signed by President Donald Trump last year, which created a federal regulatory framework for stablecoins and requires issuers to hold reserves including dollars and short-term Treasuries.
Treasury Secretary Scott Bessent has said the expansion of stablecoins could further support the dollar’s role as the world’s reserve currency.
Bessent has repeatedly said that a well-regulated, dollar-based stablecoin market could reinforce the US dollar’s global role by extending its network effects into digital payments.
He has also linked stablecoin growth to greater demand for US Treasuries, arguing that the technology could help preserve and strengthen the dollar’s status as the world’s leading reserve currency.
Governments elsewhere are pursuing alternative digital payment infrastructure. China’s digital yuan is one of the currencies used in Project mBridge, while the European Central Bank is developing a digital euro and this week launched a project to connect blockchain markets with existing European payment systems.
