The Trump administration is reportedly considering an initiative to promote dollar-denominated stablecoins abroad.
The goal, according to a Bloomberg report citing people familiar with the matter, is to protect the dollar’s place as a global reserve asset and increase demand for U.S. Treasuries, which stablecoin issuers typically hold as reserves.
Joint ventures and federal agencies under discussion
According to the report, the initiative could involve several federal agencies, including the Department of the Treasury and the Department of State. The US International Development Finance Corporation (DFC) could also be part of the plan.
One option being considered is to create joint ventures between the government and private sector companies to support stablecoin projects in foreign markets.
This is likely where the DFC would come in, as it often partners with private companies to advance U.S. foreign policy goals, and its leader is Ben Black, son of Apollo Global Management co-founder Leon Black. Apollo has reach in the crypto and stablecoin space, including a partnership with Coinbase Asset Management that allows users to borrow against their digital assets.
Stablecoins are typically pegged to traditional currencies, with issuers typically maintaining reserves of cash and short-term government debt to collateralize the tokens, and the U.S. government’s proposal will focus on dollar-backed versions, which could create a potential source of demand for U.S. Treasuries as their circulation expands.
President Donald Trump signed the GENIUS Act into law last year, establishing a federal framework that requires stablecoin issuers to hold reserves that include dollars and short-term Treasury bonds. Scott Bessent, the Treasury Secretary, also argued that stablecoin adoption could strengthen the dollar’s position as the global reserve currency.
Dollar tokens dominate, euro market is still small
Data from DefiLlama puts the stablecoin’s total market capitalization at around $306 billion, with Tether’s USDT holding almost 60%. According to RWA.xyz, dollar-pegged stablecoins account for about $305 billion of that market capitalization, with their euro-backed counterparts holding almost $805 million, and almost $81 million going to those tied to the Brazilian real.
The platform’s net flow data also shows positive flows for several dollar stablecoins, including $1.2 billion for USDC and $1.1 billion for USDT, followed by $819 million for Ethena’s USDe and $355 million for Ripple’s RLUSD. Meanwhile, Visa Onchain Analytics recorded $6.4 trillion in total stable transaction volume over the past 30 days, with a total number of transactions of 1.7 billion.
However, Washington’s plan comes at a time when other economies are developing competing payment infrastructures. For example, China’s digital yuan is already used in the mBridge project, while the European Central Bank is advancing its digital euro project and recently spear an initiative linking blockchain markets to existing European payment systems.
More than 12 euro stablecoins are now fully authorized under MiCA, including EURR, issued by Stripe-owned Bridge, which Revolut began rolling out to select customers in Denmark, Poland and Portugal in August.
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