US Weighs Promoting Dollar-Backed Stablecoins Abroad

The Trump administration is considering an initiative to expand the use of dollar-backed stablecoins outside the United States, positioning the effort as a way to bolster the dollar's role as the world's reserve currency, Bloomberg reported Wednesday. Citing people familiar with the matter, Bloomberg said the government may back stablecoin-related projects through joint ventures with private-sector companies. The effort could draw in several agencies, including the Treasury Department, the State Department and the US International Development Finance Corporation (DFC). Officials have repeatedly linked stablecoin growth to strategic dollar objectives, arguing that wider stablecoin adoption can reinforce the dollar's global settlement role and lift demand for US Treasurys. In February 2025, venture capitalist David Sacks, then serving as the White House's crypto and AI czar, said stablecoins could "extend the dollar's dominance internationally" and potentially drive "trillions of dollars" of additional demand for US government debt. That messaging has also been echoed by Treasury leadership. In July 2025, Treasury Secretary Scott Bessent said the GENIUS Act—legislation establishing a federal regulatory framework for payment stablecoins—could strengthen the dollar's reserve-currency status, broaden access to the dollar economy and increase demand for US Treasurys. While the overseas push remains under consideration, work on domestic stablecoin rules has continued. The Treasury has been implementing the GENIUS Act through rulemaking focused on how payment stablecoins may be issued, offered and sold. On Aug. 17, Treasury issued a notice of proposed rulemaking and invited public comment on provisions governing issuance, offering and sale. For markets, the regulatory backdrop matters. Broad adoption abroad would likely require clear, predictable compliance standards, particularly for projects that could qualify for public-private support. A government-linked initiative could also reshape competition overseas by accelerating distribution partnerships and expanding the number of jurisdictions where dollar stablecoins are used for settlement and retail payments. The prospective US move comes as other regions step up digital payments infrastructure, including central bank digital currency (CBDC) pilots and cross-border payment experiments. China's digital yuan is being used in Project mBridge, a platform aimed at cross-border CBDC transactions. In Europe, the European Central Bank is preparing a 12-month digital euro pilot expected to begin in the second half of 2027. Bloomberg did not provide details on how any joint ventures would be structured, which jurisdictions would be targeted, or what regulatory constraints would apply. Cointelegraph said it contacted the US Treasury, the DFC and several US-based stablecoin companies for comment but did not receive responses before publication. Investors and industry participants will be watching for further disclosures, including which stablecoin activities could receive support, how the initiative would intersect with GENIUS implementation, and whether the stated aim of boosting US Treasury demand translates into specific, measurable policy steps.