U.S. Weighs Overseas Push for Dollar-Backed Stablecoins

U.S. officials are considering a program to expand the international use of dollar-backed stablecoins by forming public-private joint ventures and coordinating support from federal agencies. The effort would involve the Treasury Department, the State Department and the U.S. International Development Finance Corporation (DFC).

Under the plan under discussion, selected stablecoin projects would receive financing or other support through partnerships that combine private technology and distribution with government backing. Officials say the goal is to increase cross-border use of dollar-denominated stablecoins and to expand demand for U.S. Treasury securities that typically back those tokens.

Implementation could include DFC financing or investment to help build stablecoin infrastructure in foreign markets, while Treasury and State would take the lead on policy, regulatory coordination and diplomatic outreach. The initiative would be linked to a federal framework for payment stablecoins established by the GENIUS Act.

The Treasury has moved to put rules in place. On Aug. 17 it published a notice of proposed rulemaking seeking public comment on provisions that would govern the issuance, offering and sale of payment stablecoins. Administration officials say the rulemaking aims to increase trust in regulated dollar-backed tokens for cross-border transactions.

Private stablecoin issuers and fintech firms could be invited into joint ventures with U.S. agencies to design and operate payment rails abroad. Proponents say official involvement would signal regulatory clarity and creditworthiness to international banks, payment providers and sovereigns.

Critics are expected to question how public oversight would be balanced with private control of payment infrastructure, how consumer protections and anti-money-laundering safeguards would be enforced, and the geopolitical effects of promoting private dollar instruments in other countries’ financial systems. Any program would require coordination among U.S. regulators, foreign finance ministries and host governments.

Other countries are building their own digital payment systems. China’s digital yuan is already used in a cross-border platform for central bank digital currencies, and the European Central Bank plans a 12-month digital euro pilot expected to begin in the second half of 2027.

Venture capitalist David Sacks has argued that stablecoins could “extend the dollar’s dominance internationally” and create substantial additional demand for U.S. government debt. Treasury Secretary Scott Bessent described the GENIUS Act as a way to bolster the dollar’s standing, calling the rules a means to “cement” the U.S. dollar’s status as the world’s reserve currency.