The stablecoin surge happening right now is being positioned as a key defense mechanism for US dollar dominance, and Donald Trump Jr. has argued that these digital assets will counterbalance declining foreign Treasury holdings. Speaking at a crypto conference in Singapore on Wednesday, the president’s eldest son claimed that the relationship between the surge in stablecoins and the US dollar will preserve American economic power as nations like China and Japan reduce their debt positions.
With the market hitting $300 billion and growing over 40 percent this year, the stablecoin boom that Trump Jr. champions could reshape how the world maintains dollar hegemony globally.
Stablecoin Surge Strengthens US Dollar Hegemony And Market Stability
Trump Jr. Links Growing Stablecoin Market to Dollar Dominance
The connection between the surge in stablecoins and US dollar hegemony protection centers on replacing traditional Treasury buyers. Right now, US dollars back about 99 percent of the $300 billion stablecoin market, according to JPMorgan, and this concentration matters for American monetary power.
Trump Jr. had this to say:
“Crypto is actually going to be the thing that preserves dollar hegemony around the world.”
He went on to elaborate on how the stablecoin surge addresses geopolitical shifts:
“As stablecoins start becoming the markets and treasuries, that’s going to replace China and Japan and some of these places that say, ‘You know what? We don’t want America to have that power anymore.’ This is going to backfill a deficit created by those countries who are trying to get away from that.”
Regulatory Changes Fuel the Stablecoin Boom
Congress passed the Genius Act in July, and it created a regulatory framework that legitimized stablecoins and accelerated their growth. The market has expanded twice as fast as the broader crypto industry, which is significant when you consider the volatility and uncertainty that have characterized this space for years.
Richard Teng, who serves as chief executive of Binance, said:
“By virtue of the US being so supportive of that, it’s going to continue to create strong demand and hegemony of the US dollars.”
This regulatory support came at a time when US Treasuries faced sell-offs earlier this year following President Trump’s tariff announcements, raising concerns about potential Chinese retaliation through debt sales.
Political Risks Threaten Growth Momentum
Trump Jr. warned that future administrations could reverse current pro-crypto policies, and that the stablecoin industry needs to accelerate to become irreversible. This acknowledgment of vulnerability is notable coming from someone so closely tied to the current administration.
He stated:
“What we have to do is we have to get firmly entrenched, we have to have people all in to make it too big for them to essentially try to take over.”
The Trump family has launched several crypto ventures, including World Liberty Financial’s USD1 stablecoin and also American Bitcoin mining company. These initiatives align with the administration’s goal of making the US the “crypto capital of the world,” and they demonstrate the family’s commitment to this sector.
The surge in stablecoins represents a new strategy for protecting US dollar hegemony, positioning digital currencies as reinforcements rather than threats to American monetary power. Time will tell whether this approach successfully offsets the geopolitical shifts in Treasury holdings, but the growth trajectory and regulatory support suggest that stablecoins are becoming an increasingly important part of the financial landscape.
