The Trump administration is weighing a plan to promote dollar-backed stablecoins abroad in order to cement the dollar's status as the world's leading reserve currency. According to Bloomberg, Washington is discussing joint ventures with private companies, while the total stablecoin market cap has already reached $292.49 billion.
US Treasury Secretary Scott Bessent recently described dollar-backed stablecoins as a tool that supports the dollar's dominance, noting that the dollar accounts for nearly 90% of transactions on global currency markets. If carried out, the new plan would add another channel of influence on top of that edge. Stablecoins have gone from a niche crypto tool to infrastructure the US government itself now courts: a joint project between the Treasury and private stablecoin issuers would have been hard to picture just a few years ago.
Who in Washington would drive the dollar push
Under the plan being discussed in Washington, the Treasury Department, the State Department and the US International Development Finance Corporation, or DFC, could all play key roles. The goal is simple: boost demand for US Treasury notes and lock in the dollar's position in cross-border settlements through joint ventures with private stablecoin issuers.
DFC traditionally finances infrastructure projects in developing countries rather than crypto ventures. Its possible role in the plan suggests Washington views dollar stablecoins not just as a financial product but as a foreign-policy tool alongside traditional development aid.
There are no details yet on which specific countries or companies might sign agreements. Bloomberg describes the plan as an early-stage discussion, with no approved budget or launch timeline.
USDT and USDC already control the $292.49 billion market
The two largest stablecoins, USDT and USDC, are pegged to the dollar at a 1:1 ratio. Together they hold almost 90% of the entire stablecoin market, now valued at $292.49 billion. By comparison, hundreds of other dollar and non-dollar stablecoins split less than a tenth of the market between them.
Why the dollar already dominates global settlements
A US law called the GENIUS Act requires stablecoin issuers to hold reserves in dollars and short-term Treasury bills. That ties every token issued to real US government debt and makes stablecoins part of the traditional financial system rather than a parallel tool outside it.
Before the GENIUS Act passed last year, some stablecoins on the market didn't disclose their full reserve structure at all, creating risk for token holders during sharp market drops. The new law closed that gap for US issuers, though international competitors still operate under differing transparency standards.
Stablecoins have become a buyer of Treasury bonds
Stablecoin issuers' combined reserves invested in US government debt are approaching $200 billion. That already puts them among the top 20 holders of US Treasury bonds, ahead of the reserves of several major countries.
The more stablecoins issuers create, the more dollar debt they're required to buy under GENIUS Act rules. For Washington, that creates a direct incentive to keep the market growing: every new dollar issued as a stablecoin turns into a potential bond buyer.
A spot among the top 20 holders of US debt puts private token issuers in the same league as entire countries' central banks. Just a few years ago, that level of sway over the Treasury market would have been unthinkable for crypto companies.
What risks do the IMF and BIS see
The International Monetary Fund and the Bank for International Settlements have repeatedly warned that dollar-backed stablecoins can create problems for developing economies. Because the tokens move on a blockchain, they bypass traditional banking channels, making it harder for central banks to track and control those flows.
- Capital flight: during periods of crisis, residents of countries with weak currencies could shift heavily into dollar stablecoins, adding pressure on the national currency.
- Countries running current-account deficits are especially vulnerable to such outflows, the IMF warns.
- Local central banks lose part of their influence over the money supply if the population shifts en masse to dollar tokens.
- Losing control over the exchange rate makes fighting inflation harder in vulnerable economies.
What this means for the crypto market
If Washington's plan goes ahead, dollar stablecoins would gain extra government backing right when they already dominate settlements across the crypto market. For traders, that likely means an even steadier USDT and USDC and wider access to dollar liquidity in new regions. For users elsewhere, it's a practical matter too: both tokens will keep serving as a straightforward way to exchange USDT for hryvnia through popular routes on Kurslog.
The risks for developing economies don't disappear in the process, which is why the IMF and BIS keep watching how fast the market grows. For now, the plan remains at the discussion stage, and the US Treasury hasn't made any official statement yet. The next step is most likely an official statement from the department or the first concrete agreements with private issuers. Until then, the plan is more a signal of intent than a working strategy.
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