Report: US Weighs Overseas Push for Dollar Stablecoins to Boost Treasury Demand

The Trump administration is weighing an initiative to promote dollar-denominated stablecoins in overseas markets, according to a Bloomberg report citing people familiar with the plans.

The effort is aimed at protecting the dollar's status as the world's reserve asset and increasing demand for US Treasuries, which stablecoin issuers typically hold as reserve backing.

Joint Ventures and Federal Agencies Under Consideration

The initiative could involve several federal agencies, including the Treasury Department and the State Department, with the US International Development Finance Corp. (DFC) also part of the discussions.

One option under consideration would create joint ventures between the government and private-sector firms to support stablecoin projects in overseas markets. The DFC is a likely candidate for that role, as it often partners with private companies to advance US foreign policy goals. Its head is Ben Black, son of Apollo Global Management co-founder Leon Black. Apollo has a footprint in crypto and stablecoins, including a partnership with Coinbase Asset Management that lets users borrow against their digital assets.

Stablecoins are typically pegged to traditional currencies, with issuers generally maintaining reserves in cash and short-term government debt to back the tokens. The US government's proposal will focus on the dollar-backed versions, which could create a potential source of demand for US Treasuries as their circulation expands.

The reported plan builds on existing policy. President Donald Trump signed the GENIUS Act into law last year, establishing a federal framework that requires stablecoin issuers to hold reserves that include the dollar and short-term Treasuries. Treasury Secretary Scott Bessent has also argued that stablecoin adoption could strengthen the dollar's position as the world's reserve currency.

Dollar Tokens Dominate, Euro Market Remains Small

DefiLlama data puts the total stablecoin market capitalization at about $306 billion, with Tether's $USDT holding nearly 60%. According to RWA.xyz, dollar-pegged stablecoins represent about $305 billion of that market cap, while euro-backed counterparts hold nearly $805 million and tokens pegged to the Brazilian real account for almost $81 million.

Those figures give the reported initiative its backdrop: dollar-pegged tokens already make up nearly the entire stablecoin market by capitalization, so an overseas push would build from a dominant position rather than a deficit, with non-dollar alternatives still marginal in scale.

The platform's net flow data also shows positive flows for several dollar stablecoins, including $1.2 billion for USDC and $1.1 billion for $USDT, followed by $819 million for Ethena's USDe and $355 million for Ripple's RLUSD. Meanwhile, Visa Onchain Analytics recorded $6.4 trillion in total stablecoin transaction volume over the last 30 days, with a total transaction count of 1.7 billion.

Competing Payment Infrastructure Abroad

Washington's plan has emerged at a time when other economies are developing competing payment infrastructure. China's digital yuan is already being used in Project mBridge, while the European Central Bank is advancing its digital euro project and recently launched an initiative connecting blockchain markets with existing European payment systems.

More than 12 euro stablecoins are now fully authorized under the MiCA framework, including EURR, issued by Stripe-owned Bridge, which Revolut started rolling out to select customers in Denmark, Poland, and Portugal in August.

For now, the US effort remains in the discussion stage: the report describes options under consideration, with no finalized joint-venture structure, confirmed agency lineup, or rollout timeline yet announced. How — and whether — that plan is formalized against the state-backed projects already advancing in Europe and China is the detail to watch next.