The US administration is discussing ways to encourage the use of dollar-backed stablecoins abroad as part of a broader effort to strengthen the dollar’s standing as a global reserve asset. Bloomberg reported the plans, citing people familiar with the matter.
According to those sources, Washington is considering cooperation with private issuers of dollar-backed stablecoins. Options under review include joint initiatives that could also help lift demand for US Treasury securities.
The effort could involve several federal agencies, including the US Treasury Department and the State Department, the sources said. The US International Development Finance Corporation (DFC) could also take part.
The GENIUS Act, signed by Donald Trump in 2025, set rules requiring issuers of dollar-backed stablecoins to hold reserves in dollars and short-term US Treasury bills. As issuance expands, issuers must buy more of those assets for their reserves.
US Treasury Secretary Scott Bessent has repeatedly argued that wider adoption of stablecoins could reinforce the dollar’s role as the world’s reserve currency. In his view, stablecoins backed by US government debt would create a new and stable source of private-sector demand for those securities.
Bessent has said that this could help restrain the growth of public debt, reduce debt-servicing costs and expand access to digital dollar infrastructure worldwide.
In August, US public debt topped $40 trillion for the first time. Over the past 10 years, Americans’ total debt burden has doubled.
