Trump administration weighs plan to promote dollar stablecoins abroad

The Trump administration is considering a plan, first reported by Bloomberg, to actively promote USD-backed stablecoins overseas through joint ventures with private companies, aiming to cement the dollar's global reserve status and shore up demand for U.S. Treasury securities. The Treasury and State Departments and the U.S. International Development Finance Corporation could play key roles.

• USDT and USDC together account for nearly 90% of the ~$292 billion stablecoin market, and issuers are already among the top 20 holders of U.S. sovereign debt.
• The IMF and BIS have warned that widespread dollar-stablecoin adoption could accelerate capital flight from emerging economies, bypassing traditional banking channels and pressuring domestic currencies.
• No formal proposal or timeline has been announced, and the plan remains under consideration in Washington.