US Weighs Overseas Push to Expand Dollar Stablecoin Use
The Trump administration is reportedly exploring a new initiative aimed at expanding the international use of US dollar-backed stablecoins as Washington seeks to reinforce the dollar’s position in the global financial system.
According to people familiar with the plans, the US government could work with private-sector companies through joint ventures focused on promoting stablecoin adoption in overseas markets. Several federal agencies could take part in the effort, including the Treasury Department, State Department and US International Development Finance Corporation.
The proposed initiative would encourage greater use of dollar-denominated stablecoins outside the United States. Because many stablecoins maintain their value through reserves that include US government debt, wider adoption could also create additional demand for US Treasury securities.
The reported plans come as other major economies continue developing their own digital payment systems. China’s digital yuan is being used as part of Project mBridge, which is designed to support cross-border central bank digital currency transactions. Meanwhile, the European Central Bank is preparing a digital euro pilot that is expected to run for 12 months beginning in the second half of 2027.
US officials have increasingly presented dollar-backed stablecoins as a tool for maintaining the dollar’s international role. In February 2025, then-White House crypto and AI czar David Sacks said stablecoins could help extend the dollar’s reach globally while potentially creating trillions of dollars in additional demand for US government debt.
Treasury Secretary Scott Bessent made a similar argument in July 2025, saying the GENIUS Act could strengthen the dollar’s reserve-currency status, broaden access to the US dollar economy and increase demand for Treasury securities.
The Treasury has also continued work on implementing the GENIUS Act, which established a federal framework for payment stablecoins. On Aug. 17, the department issued a proposed rule seeking public feedback on requirements covering the issuance, offering and sale of payment stablecoins.
Bessent said the proposed rules would help further strengthen the dollar’s position as the world’s reserve currency.
The reported overseas initiative would mark another step in the US effort to use stablecoins as part of its broader dollar strategy, while placing privately issued digital assets alongside traditional financial infrastructure in the competition for global payment flows.