The Trump administration is reportedly considering promoting dollar-denominated stablecoins overseas to protect the dollar’s status as the world’s reserve currency and boost demand for US Treasuries. According to sources cited by Bloomberg, this initiative could involve the Treasury Department, the State Department, and the US International Development Finance Corp., with joint ventures between the government and private-sector firms. The stablecoin market currently has a total market cap of approximately $306 billion, with dollar-pegged stablecoins accounting for roughly $305 billion, and net flows reaching $1.2 billion for USDC and $1.1 billion for USDT. Treasury Secretary Scott Bessent has argued that stablecoin adoption could strengthen the dollar’s position as the global reserve currency, amid competition from China’s digital yuan in Project mBridge and the European Central Bank’s advancing digital euro project.
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