The United States is building a coordinated strategy to position dollar-backed stablecoins as a geopolitical monetary tool, with over 98% of the global supply already pegged to the greenback. President Trump signed an executive order on January 23, 2025 and Congress passed the GENIUS Act on July 18, 2025, requiring issuers to maintain 1:1 backing with high-quality liquid assets, which structurally generates demand for US Treasuries. A consortium of 21 global banking institutions plans to launch a new dollar stablecoin in the first half of 2027, while the US Treasury Department finalizes implementing rules. For emerging markets, these instruments already serve as savings vehicles and payment rails in volatile currency regions, but this concentration creates systemic risk in the event of a run on a major issuer.
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