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KLEA Finance Daily: Wednesday, September 23, 2026
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US Administration Considers Promoting Dollar Stablecoins Abroad
The Trump administration is exploring an initiative to promote dollar-denominated stablecoins internationally, as reported by Bloomberg. This initiative aims to bolster the dollar's status as the world's reserve currency and increase demand for US government debt. The administration is considering supporting stablecoin projects through joint ventures with private sector firms, although no specific companies or details regarding the structure or timeline of these ventures have been disclosed.
The timing of this initiative coincides with a significant rise in US Treasury yields, with the 10-year yield surpassing 5.1%, marking a 19-year high. The Federal Reserve recently raised interest rates for the first time since 2023, prompting Treasury Secretary Scott Bessent to expand the government's bond buyback program to alleviate pressure on long-term debt. The GENIUS Act, enacted in July 2025, mandates that stablecoin issuers back their tokens with reserves, primarily short-term Treasury bills, which could potentially increase demand for US government bonds.
Despite the potential for growth, the stablecoin market has faced challenges, with major players like Tether's USDT and Circle's USDC experiencing declines in value. The administration's overseas push for stablecoins would focus on payments and remittances, which are less influenced by the volatile crypto trading cycle. However, foreign governments are cautious, with some developing their own central bank digital currencies or tightening regulations on stablecoin wallets in response to the proliferation of dollar-backed tokens.
Source: KLEA News