- Trump Jr says stablecoins will preserve dollar dominance, filling the gap left by declining foreign demand for US Treasuries.
- The Genius Act fueled stablecoin growth, pushing the market past $300B with 99% backed by US dollars.
- The Trump family is deepening its crypto presence, launching stablecoins, mining firms, and speculative tokens.
Donald Trump Jr has declared that the rapid rise of stablecoins will actually help preserve the US dollar’s role as the world’s reserve currency. Speaking at a crypto conference in Singapore, the president’s son and outspoken crypto advocate said stablecoins backed by the dollar were filling the gap left by foreign governments like China and Japan reducing their exposure to US debt.
Stablecoins as the Dollar’s Safety Net
Trump Jr argued that crypto could strengthen America’s global financial power. He explained that as dollar-backed stablecoins gain adoption in global markets and even treasury operations, they effectively support US debt sales and dollar demand. “Crypto is actually going to be the thing that preserves dollar hegemony,” he told attendees, adding that stablecoins were stepping in where traditional buyers are pulling back.
Political Risk to Crypto Momentum
Despite the optimism, Trump Jr warned that future administrations could roll back pro-crypto reforms. He urged the industry to become firmly entrenched so that its progress cannot be undone. His comments come after earlier US tariff moves rattled global markets, prompting concerns that China might sell off large amounts of US Treasuries. Stablecoins, he suggested, can act as a stabilizer in such uncertain times.
Regulation and Rapid Growth
The surge in stablecoins follows the passing of the Genius Act, a regulatory framework approved in July that legitimized the sector in the US. Since then, the stablecoin market has grown to more than $300 billion, expanding twice as fast as the wider crypto market. Roughly 99% of these tokens are backed by US dollars, a fact that has only reinforced the dollar’s dominance.
Trump Family’s Expanding Crypto Ventures
The Trump family has been highly active in the digital asset space. Trump Jr, alongside his brother Eric, co-launched American Bitcoin, a listed mining company. Meanwhile, the family’s World Liberty Financial introduced its own stablecoin, USD1. Even President Donald Trump has leaned into the trend with his memecoin, $TRUMP, while positioning the US as the “crypto capital of the world.”
