Dollar-backed stablecoins already account for about 98 percent of stablecoin value, while the Trump administration is considering ways to promote their use overseas. The reported initiative would seek to reinforce the greenback’s standing as the world’s reserve asset and increase demand for US Treasury securities.
The administration is considering support for stablecoin projects through joint ventures with private-sector firms. The effort could span the Treasury Department, the State Department and the US International Development Finance Corp., according to the outline of the proposal.
The plan is not yet policy, and the US government has provided no official confirmation. The Treasury Department and the White House did not respond to requests for comment. The possible private partners, the structure of any joint ventures, their funding and regulatory roles, and the overseas markets that could be targeted have not been disclosed.
Stablecoins are digital assets intended to retain a stable value through a 1:1 link to an underlying asset, usually the US dollar. Payment stablecoins allow peer-to-peer US dollar payments around the clock, 24/7/365, on public blockchain networks.
Congress passed the GENIUS Act in July 2025, establishing a federal framework for payment stablecoins. President Donald Trump signed the measure into law last year. The law requires payment stablecoins to have 1:1 reserve backing, with relatively safe reserve assets such as US Treasury bills and bank deposits.
That structure links growth in dollar-backed tokens to holdings of dollars and short-term Treasuries. The administration’s reported objective includes preserving the US dollar’s currency preeminence while strengthening demand for government debt.
Secretary Scott Bessent has said stablecoin growth could strengthen the dollar’s position as the world’s reserve currency. In February 2025, David Sacks, then the White House crypto and AI czar, told CNBC that stablecoins could “extend the dollar’s dominance internationally”. He said such a shift could create “potentially trillions of dollars” in fresh demand for US government debt.
The market is highly concentrated. USDT and USDC are both pegged 1:1 to the dollar, and together they account for almost 90% of the $292.49 billion stablecoin market. Tether announced the launch of USA₮, which it described as a federally regulated, dollar-backed stablecoin, on January 27.
The Treasury Department issued a notice of proposed rulemaking on payment stablecoin issuance and sale on August 17. The relationship between that notice and the reported overseas initiative is unclear. It is also unknown whether the State Department and the US International Development Finance Corp. have formally agreed to take part, or when the administration may decide whether to proceed.
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