US Plans Joint Ventures to Expand Dollar-Backed Stablecoins Overseas

The US government is reportedly considering joint ventures with private stablecoin companies to expand dollar-backed tokens into overseas markets, according to a Bloomberg report.

The goal of this plan is to cement the US dollar's status as the premier global reserve currency and increase demand for US Treasury notes. The proposed effort would involve several federal agencies, including the Treasury and State Departments, as well as the US International Development Finance Corporation (DFC).

This move aims to extend the logic of the GENIUS Act, which requires US stablecoin issuers to hold reserves that include dollars and short-term Treasuries. Instead of only licensing US firms to mint dollar stablecoins domestically, Washington would help those firms or new joint vehicles place dollar tokens in markets where local currencies are weak or where the dollar already moves through informal channels.

Treasury Secretary Scott Bessent has framed dollar-backed stablecoins as a tool supporting the dollar's dominance. He noted that the dollar accounts for nearly 90% of foreign exchange transactions and said that the GENIUS Act could strengthen the dollar's status as the global reserve currency and lift demand for US Treasurys.

The plan is not yet policy, but it would give compliant issuers an edge in distribution. However, critics warn that this push could create severe risks for emerging economies with current-account deficits that are vulnerable to capital outflows, since stablecoins bypass traditional banking channels and make it harder for central banks and governments to monitor and influence those flows.