US Considers Global Expansion and Adoption of Dollar-Denominated Stablecoins to Stimulate Treasury Demand

US Government Considers Global Expansion and Adoption of Dollar-Denominated Stablecoins

The US government has begun serious discussions about the global rollout of dollar-pegged stablecoins through public-private partnerships, aiming to maintain the dollar's global dominance while expanding demand for US Treasury bonds.

The Trump administration is considering an initiative to promote the use of dollar-denominated stablecoins overseas, according to sources, in a bid to reinforce the greenback's status as the world's reserve asset https://t.co/TVuagA9CMj

--- Bloomberg (@business) September 24, 2026

According to sources, the Trump administration is exploring measures to promote the use of dollar-denominated stablecoins overseas to strengthen the US dollar's position as the world's reserve currency.

Reports from major media outlets, including Bloomberg, indicate that federal agencies such as the Treasury Department, State Department, and the US International Development Finance Corporation (DFC) are involved, with options like establishing joint ventures to support stablecoin initiatives abroad.

Objectives and Background: Maintaining the Dollar's Reserve Currency Status and Stimulating Treasury Demand

The primary goal of this initiative, promoted by the Trump administration, is to safeguard the US dollar's status as the world's reserve currency and create a new source of demand for US Treasury bonds held as reserves by stablecoin issuers.

The GENIUS Act, signed by President Donald Trump, mandates stablecoin issuers to hold reserves in dollars or short-term Treasury bonds, and Treasury Secretary Scott Bessent has emphasized that the proliferation of stablecoins directly correlates with the expansion of the dollar economy and the stimulation of Treasury demand.

In fact, the market size is significantly expanding. According to data from DefiLlama and RWA.xyz, the total market capitalization of stablecoins has reached approximately $306 billion (about ¥48.5 trillion), with around 99% being dollar-pegged. Among them, Tether's USDT holds about 60% market share, with active capital inflows continuing for USDC and other tokens.

Additionally, a Visa survey (2026) indicates that the percentage of Americans positively inclined towards using stablecoins has increased to 56% due to advancements in fraud prevention measures and insurance systems.

Rising Competition: China's Digital Yuan and Europe's Digital Euro

The backdrop of these US movements is a strong sense of urgency as other countries and regions rapidly develop their own digital payment infrastructures.

China is accelerating the adoption of the digital yuan (e-CNY) under state leadership. According to the Atlantic Council, a US cryptocurrency think tank, the e-CNY has grown over 800% since 2003 and constitutes a significant portion of transactions in the mBridge payment project, strengthening its presence as a foundation for international digital payments that bypass existing Western-led payment networks like SWIFT.

Furthermore, obligations for banks to pay interest and engage in lending transactions are also supporting its adoption.

Meanwhile, Europe is advancing the development of the digital euro and legal frameworks based on MiCA (Markets in Crypto-Assets) under the leadership of the ECB (European Central Bank), aiming to reduce dependence on US financial infrastructure and payment networks.

Community Reactions and Future Challenges

The series of overseas expansion plans has elicited mixed reactions from domestic and international communities, with supporters expressing hope that it will enhance economic security and invigorate the entire cryptocurrency and stablecoin industry.

On the other hand, critics view this policy as merely a convenient means to increase buyers of US Treasury bonds, which are at a high level since 2007. They also point out structural barriers such as the risk of bank deposits flowing out due to increased regulatory measures from other countries and the challenges of overseas adoption.

The impact of the US government's initiative to promote dollar-denominated stablecoins abroad on the future global financial order and the digital currency strategies of various countries continues to attract global attention.

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