The Trump administration is considering actively promoting dollar-denominated stablecoins abroad to strengthen the US dollar’s status as the world’s reserve currency. The dollar currently represents 99% of a stablecoin market valued at over $306 billion. This initiative could involve the Treasury Department, the State Department, and the US International Development Finance Corporation, through joint ventures with private sector companies. US national debt currently stands at $37 trillion, and major dollar stablecoin issuers hold a significant portion of their reserves in short-term US Treasury bonds. Circle states that approximately 90% of USDC reserves are made up of T-Bills, while Tether reported direct and indirect exposure to US debt estimated at over $140 billion in March.
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