Report: US Weighs Overseas Push for Dollar Stablecoins to Boost Treasury Demand
The GENIUS Act established reserve requirements that could link wider stablecoin circulation to demand for dollars and short-term Treasuries.
ByWayne Jones
The Trump administration is reportedly considering an initiative to promote dollar-denominated stablecoins overseas.
The goal, according to a Bloomberg report citing people familiar with the plans, is to protect the dollar’s place as the world’s reserve asset and to raise demand for US Treasuries, which stablecoin issuers typically hold as reserves.
Joint Ventures and Federal Agencies Under Discussion
Per the report, the initiative could involve several federal agencies, including the Treasury Department and the State Department. The US International Development Finance Corp. (DFC) could also be part of the plan.
One option under consideration involves creating joint ventures between the government and private-sector firms to support stablecoin projects in overseas markets.
That’s probably where the DFC would come in, as it often partners with private companies to advance US foreign policy goals, and its head is incidentally Ben Black, son of Apollo Global Management co-founder Leon Black. Apollo has reach 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, and the US government’s proposal will focus on the dollar-backed versions, which could create a potential
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. Scott Bessent, the Treasury Secretary, has also argued that stablecoin adoption could strengthen the dollar’s position as the world’s reserve currency.
