U.S. Eyes Overseas Stablecoin Push

The U.S. government is considering supporting dollar-denominated stablecoin projects overseas as part of efforts to expand international dollar use and create another source of demand for U.S. Treasury securities, according to Bloomberg.

Officials from the Treasury Department, State Department, and U.S. International Development Finance Corporation (DFC) are reportedly discussing ways to support private-sector ventures that issue stablecoins denominated in dollars abroad.

The initiative is still under consideration, with no specific country, company, funding amount, or launch date announced. However, the GENIUS Act, signed by President Donald Trump in July 2025, already treats stablecoins as a potential channel for extending dollar use and increasing demand for short-dated U.S. government debt.

The Treasury-demand mechanism can already be seen in reserve disclosures from the two largest dollar stablecoin issuers, Tether and Circle. As of June 30, 84% of USDC reserves were held in the Circle Reserve Fund, which invests in short-maturity U.S. government securities and related instruments.

The DFC has expanded equity authority and a $205 billion investment cap for international projects, and could provide a public-private investment route if the administration moves forward with overseas stablecoin ventures.