US Weighs Stablecoin Push to Strengthen the Dollar Overseas

The Trump administration is weighing joint ventures with private stablecoin firms to push dollar-backed tokens into overseas markets, according to a Bloomberg report, in a bid to cement the US dollar's status as the premier global reserve currency and to lift demand for US Treasury notes.

USDT and USDC are pegged 1:1 to the dollar and together account for almost 90% of the $292.49 billion stablecoin market. The reported plan is not yet policy, so holders see no immediate change to the peg. What could change is which companies get to issue the next dollar token, and in which countries. A US-backed push to place dollar stablecoins in more foreign wallets favours issuers with US regulatory standing. Non-US dollar tokens would still circulate, but without the same US policy cover.

The Treasury and State Departments, along with the US International Development Finance Corporation (DFC), could play key roles in the overseas push, with the effort potentially involving several federal agencies. The plan could see US-backed stablecoin companies expand into overseas markets through new partnerships or joint ventures.

How the plan differs from the GENIUS Act

The proposal extends, rather than replaces, the GENIUS Act. Under that law, US stablecoin issuers are required to hold reserves including dollars and short-term Treasuries. The reported plan takes the same logic abroad: instead of only licensing US firms to mint dollar stablecoins domestically, Washington would help those firms, or new joint vehicles, place dollar tokens in markets where local currencies are weak or where the dollar already moves through informal channels.

Treasury Secretary Scott Bessent has framed dollar-backed stablecoins as a tool supporting the dollar's dominance, noting that the dollar accounts for nearly 90% of foreign exchange transactions. In July 2025 he said the GENIUS Act could strengthen the dollar's status as the global reserve currency and lift demand for US Treasurys. In February 2025, then-White House crypto and AI czar David Sacks said stablecoins could extend the dollar's dominance internationally and potentially generate trillions of dollars in additional demand for US government debt.

The stakes for the Treasury market are already concrete. Stablecoin issuers' aggregate holdings approach $200 billion, placing them among the top 20 holders of US sovereign debt, ahead of the reserves of several major nations.

What it could mean for offshore issuers and competing chains

For offshore dollar stablecoin issuers and the chains that host them, the reported plan tilts the field. Any joint venture structure would almost certainly route new issuance through entities subject to US rules, and a US-backed overseas push would give compliant issuers an edge in distribution.

The IMF and the Bank for International Settlements have repeatedly warned that USD-pegged stablecoins could accelerate capital flight from emerging economies under stress. The plan could create severe risks for emerging economies with current-account deficits that are vulnerable to capital outflows, since stablecoins bypass traditional banking channels and make it harder for central banks and governments to monitor and influence those flows.

The US push also lands against two competing state-issued alternatives. China's digital yuan is among the central bank digital currencies used in Project mBridge, a cross-border CBDC platform. The European Central Bank is preparing a 12-month digital euro pilot expected to begin in the second half of 2027.

What’s still missing from the plan

The plan is reported, not announced. No official US government confirmation has been provided, and the US agencies and US-based stablecoin companies contacted for comment did not respond before publication. No private companies have been named as potential partners, and the structure of any joint venture, including equity stakes, funding sources or regulatory roles, has not been described.

On Aug. 17, the Treasury issued a notice of proposed rulemaking seeking public comment on provisions governing the issuance, offering and sale of payment stablecoins. Bessent said the rules would help "cement" the dollar's reserve status. The year of that notice is not stated in the original reporting.

For a USDT or USDC holder, the next concrete signal to watch is not another speech but a filing: a future rulemaking on offshore issuance, or a disclosed partnership between a named issuer and a US agency, would move the plan from a reported framework toward enforceable policy.