Bloomberg: US mulls joint ventures to expand dollar stablecoin use abroad

Bitcoin and ether are unlikely to react directly to this report, but it sits within a policy environment that benefits dollar-pegged stablecoin issuers under US regulation and the networks that clear their tokens. In the rates market, the underlying signal matters more than the specific mechanism: a government searching for fresh foreign demand for its debt points to rising official concern over funding costs. That interpretation could add to pressure on the dollar's reserve currency narrative instead of easing it. Until officials confirm any specifics, traders are likely to treat the story as just a headline.

The administration would like people around the globe to hold digital dollars, but the stablecoin market has stopped expanding and its debt pressure is concentrated in maturities that stablecoin reserves barely reach.

Summary:

• People familiar with the plans tell Bloomberg the Trump administration is weighing a push to promote dollar-denominated stablecoins outside the US.
• Stablecoin projects could be one focus of government support through joint ventures with private-sector firms, though no companies, structure or timeline have been disclosed.
• The declared aims are to reinforce the dollar's reserve status and boost demand for US Treasuries.
• The Fed last week delivered its first rate rise since 2023, and the 10-year Treasury yield now stands above 5.1%, a level not seen in 19 years.
• The stablecoin expansion has lost momentum: during the first half, USDT dropped to roughly $184 billion while USDC fell to about $72 billion.
• The reserve requirements in the GENIUS Act direct stablecoin buying largely to short-dated Treasury bills.

Citing people with knowledge of the discussions, Bloomberg reported that the Trump administration is exploring an effort to promote dollar-backed stablecoins abroad. The goal is to shore up the dollar's global reserve status and bolster demand for US government securities.

The report identifies stablecoin projects as one of the areas the government may back through joint ventures with private-sector firms. It names no particular companies and offers no detail on the ventures' structure, funding or timing. The proposals have not been finalised, and nothing has been announced.

The timing stands out. This week has pushed the 10-year Treasury yield above 5.1%, its highest in 19 years, according to CNBC, with the 30-year yield above 5.3%. The Fed also lifted rates last week, its first increase since 2023, and Treasury Secretary Scott Bessent has already extended the government's bond buyback programme to relieve pressure at the long end of the curve.

The logic behind the stablecoin idea is straightforward. The GENIUS Act, which became law in July 2025, forces issuers to maintain one-for-one backing for every token, with reserves such as cash and short-dated Treasury bills. That means stablecoin growth abroad usually adds to issuers' demand for US government debt. Bessent has previously said the market could grow tenfold, reaching $3 trillion by the end of the decade.

But that growth has halted. Earlier this month, Bloomberg reported that Tether's USDT lost close to $3 billion in the first half, falling to around $184 billion and heading for its first contraction since the 2022 crypto crash. Circle's USDC declined by a similar amount, to about $72 billion. An overseas drive would target payments and remittances, which rely less on the crypto trading cycle.

There are limits to what such a plan can achieve. With reserves mostly limited to short-dated bills, stablecoin demand bolsters the short end of the yield curve, whereas the current stress is in 10- and 30-year maturities. Foreign governments are cautious: according to the Atlantic Council, some are developing their own central bank digital currencies or tightening rules on stablecoin wallets because of the spread of dollar tokens.

The next signals to watch are whether the administration confirms the initiative, identifies private-sector partners and states whether support would take the form of equity, guarantees or diplomatic backing. A formal announcement with funding and partners would make the case stronger that Washington is actively exporting dollar stablecoins; a lack of action or a shelved plan would leave it as a trial balloon. Stablecoin supply data are the other metric: a renewed rise in USDT and USDC would show demand following the policy. For crypto readers, this represents a tailwind for dollar stablecoin issuers, not a direct catalyst for bitcoin or ether. Until more details emerge, the prudent approach is to treat it as a report of deliberations rather than a settled policy.