The Trump administration is turning stablecoins into a central pillar of U.S. strategy—aiming to cement dollar dominance and help fund the federal government. With over 99.8% of the current $234.5 billion stablecoin market already denominated in dollars, the White House sees an opportunity not just to ride the wave—but to amplify it.
As Federal Reserve Governor Christopher Waller explained in a February speech, stablecoins allow people around the world to hold and use U.S. dollars on public blockchains—without needing a bank account. That single shift opens the door to something far bigger: access to the vast global deposit market.
According to McKinsey & Company, the global financial system holds $117 trillion in bank deposits, including $65 trillion in personal deposits. Stablecoins—especially U.S.-licensed and dollar-denominated ones—offer a way to tap into this market from the bottom up, bypassing traditional banks and reshaping how the dollar circulates globally.
Deposits Up For Grabs
Scott Bessent, the Treasury secretary, took this further at the White House crypto summit on March 7, saying the US will use stablecoins to help preserve the dollar’s role as the world’s reserve currency and in driving net new demand for US Treasury bills.
The sheer scale of the global deposit system underscores why stablecoins matter. With $117 trillion held globally in bank deposits—stablecoins offer a way to rewire how money is stored and moves across borders. By backing U.S.-licensed and controlled, dollar-denominated stablecoins to operate outside traditional banking rails, the U.S. is supercharging an alternative, existing channel for global capital—one that could begin to seriously complement or even partially replace conventional bank deposits.
For a government managing $35.8 trillion in federal debt, this isn’t just innovation—it’s a strategic opening to shape how global liquidity flows through dollar-controlled networks and help fund the federal government.
The Power of 1:1 Reserves
On March 13, the Senate Banking Committee passed the GENIUS Act—short for Guiding and Establishing National Innovation for U.S. Stablecoins—by a vote of 18–6. Sponsored by Senator Bill Hagerty and backed by President Trump, the bill sets clear rules for dollar-backed stablecoins.
The act requires USD stablecoin issuers to maintain reserves of at least 1:1. Acceptable forms include U.S. dollar–denominated coins and cash, insured bank deposits, balances at the Federal Reserve, short-term U.S. Treasuries, repurchase agreements, and money market funds.
Global Use, Local Impact
Stablecoins are already a lifeline in economically unstable countries. As Federal Reserve Governor Christopher Waller put it, they provide “a means to access and hold U.S. dollars … particularly appealing to those in high inflation countries or without easy or affordable access to dollar cash or banking services.”
While Waller didn’t describe it this way, the trend reflects bottom-up dollarization—driven by individuals, not governments, seeking to escape unstable local currencies through USD stablecoins.
But their impact goes further. Every new dollar stablecoin user abroad increases global demand for short-term U.S. debt. That supports the U.S. budget—and spreads dollar dependency. “The benefits of strong stablecoin innovation are immense—from enhancing transaction efficiency to driving demand for U.S. Treasuries,” said Hagerty.
Trump-Backed WLFI Joins the Race
The private sector is already deep in the stablecoin race—and so is World Liberty Financial (WLFI), a crypto platform backed by President Trump. This week, WLFI announced it has raised $550 million through token sales and launched its own dollar-backed stablecoin, USD1.
From Bypass to Control
Cryptocurrencies and stablecoins have increasingly been used to bypass U.S. sanctions and traditional payment systems. Now, Washington appears ready to flip the script—by letting global users hold and spend USD-backed, U.S.-controlled stablecoins without relying on banks. It’s a direct channel for exporting American monetary power, without intermediaries. Washington’s new approach to crypto and stablecoins? Can’t beat them? Regulate them—and turn them into tools of dollar dominance and geopolitical leverage.
A New Bretton Woods—Onchain
The GENIUS Act is more than regulation. It’s the groundwork for a new dollar-based system built on blockchains. If passed, the dollar could spread further—not just through banks and borders, but through crypto wallets and code.
In 1944, the Bretton Woods Agreement placed the dollar at the center of global finance. Today, a new transformation is underway—not in closed-door meetings at ski resorts, but in GitHub repositories and smart contracts.
With stablecoins, the U.S. is positioning itself to lead a new era of digital finance—where dollar dominance is secured not by legacy alone, but through renewed strategic and forward-looking public policy, paired with bold, private-sector-led innovation in business and technology, driven by market competition.