US Considers Promoting Dollar Stablecoins Abroad to Preserve Reserve Status

The US government is considering an initiative to promote dollar-denominated stablecoins overseas. The goal of this initiative, according to a Bloomberg report, is to protect the dollar's place as the world's reserve asset and increase demand for US Treasuries.

The plan could involve joint ventures between the government and private-sector firms to support stablecoin projects in foreign markets. The US International Development Finance Corp (DFC) might be involved, as it often partners with private companies to advance US foreign policy goals.

Tether's $USDT currently holds nearly 60% of the total stablecoin market cap, which stands at around $306 billion. Dollar-pegged stablecoins represent about $305 billion of this market cap, while euro-backed counterparts hold nearly $805 million.