The Trump administration is reportedly weighing an initiative to promote the use of dollar-backed stablecoins overseas as part of a broader effort to reinforce the US dollar's position as the world's reserve currency.

According to a Bloomberg report published Wednesday, which cited people familiar with the plans, the US government could support stablecoin projects by forming joint ventures with private-sector firms. The effort could involve several federal agencies, including the Treasury Department, the State Department and the US International Development Finance Corporation (DFC).

The initiative would aim to expand international adoption of dollar-denominated stablecoins while potentially boosting demand for US Treasurys, a common reserve asset held by dollar-backed stablecoin issuers. Because issuers hold dollar-denominated assets to back the tokens, wider circulation abroad can translate into incremental demand for US government debt.

The reported overseas push comes as other major economies advance their own digital payment infrastructure. China's digital yuan is among the central bank digital currencies (CBDCs) used in Project mBridge, a platform for cross-border CBDC transactions, while the European Central Bank is preparing a 12-month digital euro pilot expected to begin in the second half of 2027. The contrast frames the reported US effort, built on joint ventures with private-sector stablecoin issuers, against state-run digital currency projects abroad.

Cointelegraph reached out to the US Treasury, the DFC and several US-based stablecoin companies for comment but did not receive a response before publication.

US officials tie stablecoin growth to dollar dominance

Senior US officials have repeatedly linked the growth of dollar-backed stablecoins to preserving the dollar's global role and increasing demand for US government debt.

In February 2025, venture capitalist David Sacks, who served at the time as the White House crypto and AI czar, said stablecoins could "extend the dollar's dominance internationally" and potentially generate trillions of dollars in additional demand for US government debt.

In July 2025, US Treasury Secretary Scott Bessent said the GENIUS Act, which established a federal regulatory framework for payment stablecoins, could strengthen the dollar's status as the global reserve currency, expand access to the dollar economy and increase demand for US Treasurys.

Implementation of the GENIUS Act has continued. On Aug. 17, the Treasury issued a notice of proposed rulemaking seeking public comment on provisions governing the issuance, offering and sale of payment stablecoins. Bessent said the would help "cement" the US dollar's status as the world's reserve currency. The comment process means those provisions could still be revised before final rules are adopted, while the reported overseas initiative remains at the planning stage described in the report.