The Trump admin is reportedly mulling over a fresh push to spread dollar stablecoins far and wide. This move aims to lock in the dollar as the ultimate reserve asset while sparking more hunger for US Treasuries that stablecoin issuers usually stash as backup 🖤.
Joint Ventures And Federal Agencies Under Discussion 🕸️
Per the scoop several federal agencies like the Treasury and State Department could team up on this along with the US International Development Finance Corp aka DFC. One angle they’re eyeing is teaming government with private firms to back stablecoin plays in foreign markets. That slots the DFC right in since they often link up with companies to push US foreign policy vibes and its head Ben Black is lowkey tied to Apollo which dips into crypto via a Coinbase Asset Management partnership for borrowing against digital bags.
Dollar Tokens Dominate While Euro Market Stays Tiny 🌙
Stablecoins stay pegged to real world cash with issuers holding reserves in dollars and short term debt so this plan could ramp up demand for Treasuries as circulation grows. Trump already signed the GENIUS Act last year to set rules requiring reserves in dollars and Treasuries while Treasury Secretary Scott Bessent keeps hyping how stablecoin growth could lock the dollar stronger as global king. DefiLlama shows the whole stablecoin market cap sitting at about $306 billion with USDT grabbing nearly 60 percent. Dollar pegged ones hold roughly $305 billion while euro versions only reach $805 million and Brazilian real ones hit around $81 million. Positive flows keep rolling in like 1.2 billion for USDC 1.1 billion for USDT plus 819 million for USDe and 355 million for RLUSD. Visa data tracks 6.4 trillion in onchain stablecoin volume over the last 30 days with 1.7 billion transactions total 😈.
Other nations are cooking up rival systems too like China’s digital yuan in mBridge or the ECB advancing its digital euro with fresh blockchain to payment links. Over 12 euro stablecoins got approved under MiCA including EURR from Stripe owned Bridge now rolling out via Revolut in spots like Denmark Poland and Portugal.
Just another echo from the void by iconofsin.eth 💖
