Washington is considering a strategy to expand US dollar-backed stablecoins overseas as it seeks to strengthen the dollar’s global reserve status. The plan could also create additional demand for US Treasury securities.

According to Bloomberg, the Trump administration is considering joint ventures with private companies to support wider stablecoin use abroad. Several government agencies could take part in the effort.

The Treasury Department and State Department could play major roles in the initiative. The US International Development Finance Corporation, or DFC, could also work alongside private-sector partners.

The strategy comes as dollar-backed stablecoins already dominate the global stablecoin market. USDT and USDC together represent almost 90% of the USD 292.49 billion market.

Stablecoins are blockchain-based tokens linked to another asset, usually a national currency. Dollar-backed stablecoins maintain their value by holding reserves that support customer redemptions.

Issuers commonly hold US dollars alongside low-risk assets such as short-term Treasury securities. Those investments generate interest while providing liquid assets that issuers can use to meet redemption requests.

The Genius Act established a federal framework for stablecoins after President Donald Trump signed the legislation last year. The law requires issuers to maintain reserves that include dollars and short-term Treasuries.

Treasury Secretary Scott Bessent has described stablecoin growth as a potential tool for supporting the dollar’s international role. The dollar accounts for nearly 90% of foreign exchange transactions, according to figures cited in the provided information.

Stablecoin issuers already hold close to USD 200 billion of US sovereign debt. That amount places the sector among the top 20 holders of US government securities, ahead of several national reserve portfolios.

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