U.S. dollar

Washington is exploring a coordinated push to spread dollar-backed stablecoins around the world, using private-sector partnerships to reinforce the currency’s dominance and deepen demand for U.S. government debt. The plan, still in the discussion stage, arrives as the International Monetary Fund and the Bank for International Settlements warn that the same tokens could destabilize emerging-market currencies.

• The Trump administration is weighing joint ventures with private companies to promote dollar stablecoins abroad.
• USDT and USDC together make up almost 90% of the $292.49 billion total stablecoin market.
• Stablecoin issuers hold nearly $200 billion in assets, placing them among the top 20 holders of U.S. Treasuries.

• $292.49B total stablecoin market value led by USDT and USDC
• ~90% share of that market held by USDT and USDC combined
• ~$200B stablecoin issuers’ Treasury-linked holdings, near top-20 sovereign level
• ~90% dollar’s share of global foreign exchange transactions, per Bessent

The Trump administration is considering joint ventures with private companies to promote dollar-pegged stablecoins overseas, according to reporting by CoinDesk. Bloomberg first reported the plan, citing people familiar with the internal discussions.

The stated goal is straightforward: boost the dollar’s global reach and generate steady buying pressure for U.S. Treasury notes. Multiple federal agencies could be enlisted to make that happen.

Treasury, State and DFC Eyed for Global Stablecoin Push

The Treasury Department and the State Department could take lead roles in promoting U.S. dollar stablecoins internationally, working alongside the U.S. International Development Finance Corporation. Stablecoins are blockchain-based tokens whose value is pegged to an external reference, most commonly the dollar, and they function as tokenized cash used heavily for crypto trading and cross-border payments.

Under the GENIUS Act, U.S. stablecoin issuers must hold reserves consisting of actual dollars and short-term Treasuries at a 1:1 ratio against tokens in circulation. That legal requirement is central to Washington’s interest in the sector: every new stablecoin issued abroad translates into fresh demand for U.S. government paper.

Treasury Secretary Scott Bessent has described dollar-backed stablecoins as a tool that reinforces the currency’s dominance, noting the dollar already accounts for nearly 90% of global foreign exchange transactions. Bessent’s framing positions stablecoins less as a private financial product and more as an instrument of currency policy.

Issuers’ Nearly $200 Billion in Treasuries Rivals Foreign Governments

USDT and USDC, the two largest stablecoins, are each pegged 1:1 to the dollar and together account for almost 90% of the $292.49 billion stablecoin market. Investor confidence in both tokens rests on the issuers’ ability to redeem them for fiat currency on demand, which is why they hold dollar cash and interest-bearing government debt as backing.

With aggregate holdings approaching $200 billion, stablecoin issuers now rank among the top 20 holders of U.S. sovereign debt, ahead of the reserves held by several major nations. That scale gives the sector real weight in Treasury markets, and it is the mechanism the administration appears to want to expand through partnerships with private firms operating overseas.

IMF and BIS Flag Capital Flight Risk for Emerging Markets

The IMF has warned that wider stablecoin adoption could accelerate capital flight, weaken domestic currencies and limit policymakers’ control over financial flows in emerging economies, a concern raised in an IMF address on stablecoins in emerging markets. Because stablecoins move over blockchains rather than traditional banking rails, they can bypass the channels central banks normally use to monitor and influence money flows.

The Bank for International Settlements has echoed that warning in its own annual report, cautioning that dollar-pegged stablecoins could intensify pressure on local currencies if adopted widely for everyday transactions. Both institutions argue the risk is greatest for economies already running current-account deficits, where sudden outflows during periods of stress are hardest to absorb.

The BlockWest read. The real shift here is that stablecoin issuers are becoming an instrument of state currency policy rather than pure market actors. If Washington formalizes joint ventures to push adoption abroad, issuers’ balance sheets and Treasury buying will increasingly track policy goals in Foggy Bottom, not just user demand. Allocators should watch whether that alignment changes issuance terms or reserve composition over time.

Neither the IMF address nor the BIS report was framed as a response to this specific initiative, and no agency has confirmed a formal timeline for the joint-venture plan. The open question is whether Treasury, State and the DFC move from internal discussion to an announced program, and how emerging-market central banks respond if dollar stablecoin adoption accelerates within their borders.