The Trump administration is reportedly considering an initiative to promote dollar-denominated stablecoins overseas.<\/p>\n
The goal, according to a Bloomberg report citing people familiar with the plans, is to protect the dollar\u2019s place as the world\u2019s reserve asset and to raise demand for US Treasuries, which stablecoin issuers typically hold as reserves.<\/p>\n
Per the report, the initiative could involve<\/a> several federal agencies, including the Treasury Department and the State Department. The US International Development Finance Corp. (DFC) could also be part of the plan.<\/p>\n One option under consideration involves creating joint ventures between the government and private-sector firms to support stablecoin projects in overseas markets.<\/p>\n That\u2019s probably where the DFC would come in, as it often partners with private companies to advance US foreign policy goals, and its head is incidentally Ben Black, son of Apollo Global Management co-founder Leon Black. Apollo has reach in crypto and stablecoins, including a partnership with Coinbase Asset Management that lets users borrow against their digital assets.<\/p>\n Stablecoins are typically pegged to traditional currencies, with issuers generally maintaining reserves in cash and short-term government debt to back the tokens, and the US government\u2019s proposal will focus on the dollar-backed versions, which could create a potential source of demand for US Treasuries as their circulation expands.<\/p>\n President Donald Trump signed the GENIUS Act into law last year, establishing a federal framework that requires stablecoin issuers to hold reserves that include the dollar and short-term Treasuries. Scott Bessent, the Treasury Secretary, has also argued that stablecoin adoption could strengthen the dollar\u2019s position as the world\u2019s reserve currency.<\/p>\n DefiLlama data puts the total stablecoin market cap at about $306 billion, with Tether\u2019s USDT holding nearly 60%. According to RWA.xyz, dollar-pegged stablecoins represent about $305 billion of that market cap, with their euro-backed counterparts holding nearly $805 million, and almost $81 million goes to those pegged to the Brazilian real.<\/p>\n The platform\u2019s net flow data also shows positive flows for several dollar stablecoins, including $1.2 billion for USDC and $1.1 billion for USDT, followed by $819 million for Ethena\u2019s USDe and $355 million for Ripple\u2019s RLUSD. Meanwhile, Visa Onchain Analytics recorded $6.4 trillion in total stablecoin transaction volume over the last 30 days, with a total transaction count of 1.7 billion.<\/p>\n However, Washington\u2019s plan has come at a time when other economies are developing competing payment infrastructure. For example, China\u2019s digital yuan is already being used in Project mBridge, while the European Central Bank is advancing its digital euro project and recently launched<\/a> an initiative connecting blockchain markets with existing European payment systems.<\/p>\n More than 12 euro stablecoins are now fully authorized<\/a> under the MiCA framework, including EURR, issued by Stripe-owned Bridge, which Revolut started rolling out<\/a> to select customers in Denmark, Poland, and Portugal in August.<\/p>\n The post Report: US Weighs Overseas Push for Dollar Stablecoins to Boost Treasury Demand<\/a> appeared first on CryptoPotato<\/a>.<\/p>","protected":false},"excerpt":{"rendered":" The Trump administration is reportedly considering an initiative to promote dollar-denominated stablecoins overseas. The goal, according to a Bloomberg report citing people familiar with the plans, is to protect the dollar\u2019s place as the world\u2019s reserve asset and to raise demand for US Treasuries, which stablecoin issuers typically hold as reserves. Joint Ventures and Federal […]<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-232073","post","type-post","status-publish","format-standard","hentry","category-discovery"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/232073"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=232073"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/232073\/revisions"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=232073"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=232073"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=232073"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Dollar Tokens Dominate, Euro Market Is Still Small<\/h2>\n