# US dollar dominance and stablecoin strategy

> Live situation record from CLSTR: https://clstr.news/situations/us-dollar-dominance-and-stablecoin-strategy
> Updated: 2026-09-23T22:21:23.000Z. Sources: 19. Developments: 3.

The United States is pursuing a dual strategy to maintain the global dominance of the dollar through traditional sanctions and the promotion of dollar-backed stablecoins.

On the sanctions front, Treasury Secretary Scott Bessent announced plans to target Iranian commercial airlines, stating that all Iranian airlines would be shut down globally by September 23. The U.S. has warned that any entity providing fuel, landing services, or tickets to these airlines could face secondary sanctions and removal from the dollar-based financial system.

Concurrently, the administration is working to integrate stablecoins into the global economy to ensure digital finance remains dollar-denominated. Following the passage of the GENIUS Act, stablecoin issuers are required to maintain 1:1 backing with high-quality liquid assets, such as U.S. Treasuries. This approach aims to create structural demand for U.S. government debt and extend U.S. monetary policy conditions internationally.

As the 10-year U.S. Treasury yield surpassed 5%, Secretary Bessent defended dollar hegemony, noting it accounts for 89.2% of foreign exchange transactions. He argued that stablecoins serve as a “digital extension of U.S. monetary influence” rather than a threat. While market analysts monitor whether yields could reach 6%, Bessent clarified that Treasury bond buybacks are intended for liquidity management and maturity structure oversight.

To further strengthen the dollar’s position as a leading global reserve asset, the Trump administration is considering a strategic initiative to promote dollar-backed stablecoins internationally through public-private partnerships. This plan may involve joint ventures between the Treasury, State Department, and the U.S. International Development Finance Corporation, alongside private providers like Circle and Paxos. By expanding the international footprint of dollar-pegged digital assets, Washington seeks to ensure foreign digital payment rails remain anchored to the dollar, especially as rival nations like China explore similar digital currency strategies.

## Claims

- The initiative aims to strengthen the dollar’s role as a global reserve currency and increase demand for U.S. Treasury securities. (corroborated by 6 sources)
- The Trump administration is considering initiatives to promote dollar-backed stablecoins overseas through public-private ventures. (corroborated by 4 sources)
- The GENIUS Act requires stablecoin issuers to back tokens with cash or short-term U.S. Treasury securities. (corroborated by 4 sources)
- The U.S. Treasury, State Department, and U.S. International Development Finance Corporation (DFC) are being considered to support these ventures. (corroborated by 4 sources)
- Stablecoin providers currently hold nearly $200 billion in U.S. Treasury bills and short-maturity government securities. (corroborated by 2 sources)
- China is considering a similar initiative to promote the global adoption of its yuan. (corroborated by 2 sources)

## Timeline

### 2026-09-23: U.S. considers global stablecoin push to boost dollar and Treasury demand

The Trump administration is weighing a plan to promote dollar-backed stablecoins globally via public-private partnerships to bolster dollar dominance and increase demand for U.S. Treasury securities.

11 sources. https://clstr.news/cluster/us-administration-considers-promoting-dollar-backed-stablecoins-globally

### 2026-09-23: United States strengthens dollar dominance through sanctions and stablecoin strategy

The U.S. is leveraging the dollar's dominance by targeting Iranian airlines with secondary sanctions and promoting dollar-backed stablecoins to secure its role in the global digital economy.

2 sources. https://clstr.news/cluster/united-states-strengthens-dollar-dominance-through-sanctions-and-stablecoin-strategy

### 2026-09-23: U.S. Treasury Secretary defends dollar hegemony amid rising yields

U.S. Treasury Secretary Scott Bessent defended dollar hegemony, citing its 89.2% share of forex trades and the role of dollar-pegged stablecoins amid rising 10-year Treasury yields.

7 sources. https://clstr.news/cluster/us-treasury-secretary-defends-dollar-hegemony-amid-rising-yields

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Cite as: US dollar dominance and stablecoin strategy. CLSTR, https://clstr.news/situations/us-dollar-dominance-and-stablecoin-strategy