The Trump administration is considering public-private joint ventures involving the Treasury, State Department, and the International Development Finance Corporation to promote dollar-backed stablecoins globally. This initiative aims to cement the U.S. dollar's status as the premier global reserve currency and boost demand for U.S. Treasuries, which back these digital assets. The push comes amid rising competition from China's digital yuan and Europe's planned digital euro pilot.
U.S. initiative to promote dollar stablecoins
- ▪The Trump administration is considering promoting dollar-backed stablecoins overseas through public-private joint ventures, with the U.S. Treasury Department, State Department, and U.S. International Development Finance Corporation weighing roles
- ▪President Donald Trump signed an executive order on January 23, 2025, that explicitly called for the development and growth of lawful dollar-backed stablecoins worldwide
Regulation under the GENIUS Act
- ▪The U.S. Treasury Department issued a notice of proposed rulemaking on August 17, 2026, to seek public comment on provisions governing the issuance, offering, and sale of payment stablecoins under the GENIUS Act
- ▪The GENIUS Act, signed into law on July 18, 2025, established a comprehensive federal regulatory framework for payment stablecoins, requiring issuers to maintain 1:1 backing with high-quality liquid assets
Stablecoin holdings of U.S. debt
- ▪U.S. Deputy Treasury Secretary Francis Brooke stated on September 22, 2026, that stablecoin providers already hold nearly $200 billion in Treasury bills and close-to-maturity Treasury securities
- ▪Stablecoin issuers such as Tether and Circle have become top 20 holders of U.S. sovereign debt, with aggregate holdings surpassing the reserves of several major nations
Stablecoin market share
- ▪Dollar-pegged tokens make up approximately $311 billion, or roughly 99.5%, of the total $312.6 billion circulating stablecoin market, according to DeFiLlama data
- ▪Tether's USDT dominates the stablecoin market with a 59.83% share of the total market capitalization, according to DeFiLlama data
China's digital yuan adoption
- ▪China's digital yuan (e-CNY) cumulative transaction value exceeded $2.3 trillion by the end of 2025, growing by over 800% since 2003, according to the Atlantic Council
- ▪China's digital yuan accounts for 95% of transactions on Project mBridge, a platform enabling peer-to-peer international central bank digital currency settlements
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