US Weighs Promoting Dollar-Backed Stablecoins Overseas to Defend Reserve Status

The Trump administration is considering an initiative to promote dollar-denominated stablecoins abroad, according to people familiar with the plans, aiming to reinforce the greenback's status as the world's reserve asset. The effort could involve joint ventures with private-sector firms and span multiple federal agencies, including the Treasury and State departments, with the US International Development Finance Corp. potentially participating, the people said on September 23, 2026. The goal is maintaining dollar preeminence and boosting demand for US Treasuries. Stablecoin issuers typically hold reserves in cash and short-term government debt. The Genius Act, signed by President Donald Trump in 2025, created a federal framework requiring issuers to hold dollar and short-term Treasury reserves. Treasury Secretary Scott Bessent has said stablecoin growth could strengthen the dollar's reserve role. The plan follows rival digital payment efforts, including Project mBridge and the ECB's digital euro.