Trump administration reportedly weighs overseas stablecoin initiative

The Trump administration is reportedly considering an initiative to expand the international use of dollar-backed stablecoins. Bloomberg reported on Wednesday that the US government could create joint ventures with private-sector companies to support stablecoin projects. The effort could involve the Treasury Department. The effort could involve the State Department. The effort could involve the US International Development Finance Corporation, or DFC. The initiative would seek to expand the international use of dollar-denominated stablecoins. The initiative could increase demand for US Treasurys, which are a common reserve asset for dollar-backed stablecoins. Other countries are developing digital payment infrastructure. China's digital yuan is used in Project mBridge for cross-border central bank digital currency transactions. The European Central Bank is preparing a 12-month digital euro pilot that is expected to begin in the second half of 2027. The Treasury, DFC and several US-based stablecoin companies did not respond to requests for comment before publication. In February 2025, David Sacks said stablecoins could extend the dollar's international dominance. Sacks also said stablecoins could generate trillions of dollars in additional demand for US government debt. In July 2025, Treasury Secretary Scott Bessent said the GENIUS Act could strengthen the dollar's status as the global reserve currency. Bessent said the act could expand access to the dollar economy. Bessent said the act could increase demand for US Treasurys. On Aug. 17, the Treasury issued a notice of proposed rulemaking on provisions governing the issuance, offering and sale of payment stablecoins. Bessent said the rules would help cement the dollar's status as the world's reserve currency.