- President Trump’s stablecoin play aimed to achieve his U.S. dollar dominance.
- Stablecoin bills have been introduced to help fast-track this objective.
According to a Forbes report, the Trump Administration has made stablecoin part of its key strategy to extend U.S. dollar dominance and fund the federal government. The report cited comments from top cabinet officials and the Federal Reserve governor.
In early March, during the White House crypto summit, Treasury Secretary Scott Bessent, stated,
“We’re going to put a lot of thought into the stablecoin regime. We’ll keep the U.S. dollar as the dominant reserve currency in the world through stablecoins.”
In addition, the report added that Federal Reserve Governor Christopher Waller echoed a similar outlook in February.
Stablecoin traction
According to Bessent, stablecoins were a new demand line for U.S. Treasury bills (T-bills), a comment well captured by Tether’s USDT traction.
According to Tether’s CEO, Paolo Ardoino, the stablecoin issuer was the seventh-largest buyer of U.S. T-bills.
Source: Tether
In 2024, the firm bought $33 billion worth of T-bills, placing it above Canada and Mexico. USDT is the world’s largest stablecoin backed by U.S. T-bills, cash, and other cash equivalents.
Circle’s USDC, the second-largest stablecoin, also has U.S. T-bills as part of its reserve to ensure a 1:1 peg to the dollar.
Overall, over 99% of the current $234 billion stablecoin market size was dollar-peg versions, further giving the U.S. a vantage point.
Besides, it is now one of the hottest segments in crypto, attracting interest from large and small players, including governments. This week alone, Trump-linked World Liberty Financials launched its stablecoin, USD1, while Fidelity tested a similar product.
On the cross-border payments side, Paypal, Stripe, Visa, and other banks have made or are planning similar moves.
According to Ardoino, the ‘stablecoin multiverse’ was inevitable. To keep up with the traction and offer regulatory clarity, the U.S. Congress has introduced two stablecoin bills, the GENIUS and STABLE Acts.
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