U.S. Backs Stablecoins to Boost Dollar Power, Eyes $2T Market

The U.S. Treasury is positioning dollar-pegged stablecoins as a strategic tool to reinforce global dollar dominance. Treasury Secretary Scott Bessent projects the market could reach $2 trillion, with Citigroup analysts suggesting $3.7 trillion by 2030. New legislation advancing through Congress would mandate full backing by Treasury bills, creating a regulated on-ramp for crypto into traditional finance.

This initiative serves dual purposes: expanding dollar-based digital assets globally while increasing demand for U.S. debt instruments. The political landscape appears favorable, with bipartisan support emerging and former President TRUMP endorsing the approach. Unlike earlier regulatory skepticism, stablecoins are now framed as the natural evolution of dollar hegemony in the digital age.