Trump administration weighs global stablecoin plan to cement dollar dominance

September 24, 2026 at 11:33 AM2 min

This digest was compiled by AI from multiple sources — links to the originals are below.

The Trump administration is considering joint ventures with private companies to promote dollar-backed stablecoins overseas, aiming to bolster the dollar's global reserve status and increase demand for U.S. Treasury securities. The Treasury and State Departments, along with the U.S. International Development Finance Corporation, could play key roles in the initiative. The IMF has warned that wider stablecoin adoption could accelerate capital flight and weaken domestic currencies in emerging economies.

Key Facts

The Trump administration is considering joint ventures with private companies to promote dollar-backed stablecoins overseas, according to Bloomberg.
The Treasury and State Departments, along with the U.S. International Development Finance Corporation, could play key roles in promoting U.S. dollar stablecoins globally.
USDT and USDC, the world's top two stablecoins, are pegged 1:1 to the U.S. dollar and together account for almost 90% of the total stablecoin market value of $292.49 billion.
Stablecoin issuers hold aggregate reserves approaching $200 billion, placing them among the top 20 holders of U.S. sovereign debt.
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.

The Proposal

The Trump administration is weighing a plan to promote dollar-backed stablecoins overseas through joint ventures with private companies, Bloomberg reported citing informed sources. The initiative is still in the early stages, and the Treasury, State Department, and the U.S. International Development Finance Corporation could be involved. The goal is to support the dollar's global role and increase demand for U.S. Treasury securities. The Treasury and the White House did not respond to Bloomberg's request for comment, while the State Department and DFC declined to comment.

Stablecoin Market Scale

Stablecoins are blockchain-based digital tokens pegged to an external reference such as the U.S. dollar, and are widely used for crypto trading and cross-border payments. USDT and USDC, the top two stablecoins, are pegged 1:1 to the dollar and together account for almost 90% of the total stablecoin market value of $292.49 billion. Stablecoin issuers hold actual U.S. dollars at a 1:1 ratio along with safe investments like U.S. government debt, and under the GENIUS Act they are required to hold reserves including dollars and short-term Treasuries. With aggregate holdings approaching $200 billion, stablecoin issuers are already among the top 20 holders of U.S. sovereign debt, surpassing reserves of several major nations.

Emerging Market Risks

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. Stablecoins enable money to move over blockchains, bypassing traditional banking channels and making it harder for central banks and governments to monitor and influence those flows. Treasury Secretary Scott Bessent recently described dollar-backed stablecoins as a tool supporting the dollar's dominance, noting that the dollar accounts for nearly 90% of foreign exchange transactions.