U.S. Weighs Global Stablecoin Push as Issuers Near $200B in Treasury Holdings

The U.S. government is considering ways to promote dollar-denominated stablecoins overseas, as stablecoin issuers have become a growing source of demand for U.S. Treasury securities.

According to Bloomberg, the Trump administration is weighing an initiative that could include public-private joint ventures with stablecoin companies. The discussions are aimed at expanding the use of dollar-backed stablecoins abroad, according to people familiar with the plans.

The proposal comes as stablecoin issuers already hold nearly $200 billion in Treasury bills and other near-maturity Treasury securities.

Stablecoin Issuers Already Hold Nearly $200B in Treasuries

U.S. Treasury Deputy Secretary Francis Brooke said stablecoin providers already own nearly $200 billion of Treasury bills and other close-to-maturity Treasury securities during remarks at the Treasury Market Conference.

Brooke described stablecoin providers as another source of demand for Treasuries and said the market could represent a significant growth opportunity as the U.S. finalizes its stablecoin regulatory framework.

The stablecoin market currently stands at roughly $307 billion, according to DeFiLlama data, with Tether’s USDT accounting for about $184 billion and Circle’s USDC for roughly $76 billion.

That puts the two largest dollar-backed stablecoins at the center of a market where reserve management is increasingly connected to demand for short-term U.S. government debt.

Washington Is Building the Rules Behind the Market

The potential overseas initiative comes as U.S. regulators work on implementing the GENIUS Act.

On Sept. 24, the Federal Reserve proposed two regulatory packages covering payment stablecoin issuers under the legislation. One proposal would require Board-supervised issuers to fully back stablecoins with permitted reserve assets, including short-term Treasury bills and other high-quality liquid assets. It also covers capital, risk management and custody requirements.

The second proposal would establish an application process for Board-supervised banks seeking approval to issue payment stablecoins. The Federal Reserve is accepting public comments for 60 days after publication in the Federal Register.

The Treasury Department separately issued its proposed GENIUS Act rules in August. The department said the law is expected to take effect on Jan. 18, 2027, with payment stablecoin issuers generally required to obtain a federal or state license.

Overseas Push Could Extend Dollar Stablecoin Use

Bloomberg reported that the administration is considering public-private partnerships as part of a broader effort to promote dollar-denominated stablecoins outside the U.S.

The proposal remains under consideration and has not been finalized.

Stablecoins already have uses beyond cryptocurrency trading. A June analysis by the Federal Reserve Bank of Philadelphia found that stablecoins have increasingly been used for international remittances and business-to-business transactions, although most stablecoin activity remains linked to cryptocurrency markets.

That gives dollar-backed stablecoins a potential role in cross-border payments while keeping the underlying reserves tied to U.S. dollar assets.

Treasury Demand Becomes Part of the Stablecoin Equation

The growing connection between stablecoins and Treasury markets is becoming more visible as the U.S. regulatory framework takes shape.

For issuers, reserve requirements can translate into demand for assets such as Treasury bills. For the U.S. government, broader use of dollar-backed stablecoins could therefore create another channel through which global digital-asset activity connects with dollar-denominated government debt.

Whether the proposed overseas initiative moves forward will depend on the administration's policy decisions and the implementation of the GENIUS Act, including the rules governing stablecoin issuance, reserves and banking participation.