Stablecoins are being seen as a key tool to maintain the U.S. dollar's dominance in global markets, according to Bryan Pellegrino, CEO of LayerZero Labs.
Stablecoins are being seen as a key tool to maintain the U.S. dollar's dominance in global markets, according to Bryan Pellegrino, CEO of LayerZero Labs. Pellegrino highlighted the cross-border appeal of stablecoins, particularly those pegged to the U.S. dollar, as a way to boost demand for the dollar worldwide. He explained that stablecoins are uniquely positioned to challenge other currencies, especially in countries suffering from high inflation like Venezuela and Argentina.
Pellegrino believes that stablecoins will continue to gain support at both federal and state levels, further solidifying the U.S. dollar's role as the world’s reserve currency. He pointed to Tether, one of the largest stablecoin issuers, as evidence of growing demand for U.S. assets. Tether recently became the seventh-largest holder of U.S. Treasury bills, surpassing several countries, including Canada and Saudi Arabia.
This trend aligns with the U.S. government's plans to use stablecoins to extend the influence of the U.S. dollar. Speaking at the March 2025 White House Crypto Summit, U.S. Treasury Secretary Scott Bessent confirmed that the Trump administration intends to prioritize stablecoins in their efforts to protect the U.S. dollar's global position. Bessent noted that stablecoins will be central to future financial strategies, especially in terms of international trade.
Stablecoins have already shown their utility in Latin America, where over 50% of digital asset transfers to countries like Argentina, Brazil, and Venezuela were in stablecoins, according to a 2023 Chainalysis report. These digital assets are particularly attractive in regions with economic instability because they offer low transaction fees, near-instant settlement times, and stability relative to the local currencies.
For countries facing hyperinflation or strict capital controls, stablecoins have become an essential tool for remittances and as stores of value. Pellegrino added that this growing trend is likely to continue as more people in developing nations seek out stable alternatives to their volatile currencies.
The rise of stablecoins is seen as a way for the U.S. government to build a "financial moat" around the U.S. dollar by capitalizing on the increasing global demand for dollar-pegged tokens. As governments and financial institutions turn to stablecoins as part of their broader financial strategies, the U.S. dollar’s position as the global reserve currency could be further reinforced.
This article contains links to third-party websites or other content for information purposes only (“Third-Party Sites”). The Third-Party Sites are not under the control of CoinMarketCap, and CoinMarketCap is not responsible for the content of any Third-Party Site, including without limitation any link contained in a Third-Party Site, or any changes or updates to a Third-Party Site. CoinMarketCap is providing these links to you only as a convenience, and the inclusion of any link does not imply endorsement, approval or recommendation by CoinMarketCap of the site or any association with its operators.
This article is intended to be used and must be used for informational purposes only. It is important to do your own research and analysis before making any material decisions related to any of the products or services described. This article is not intended as, and shall not be construed as, financial advice.
The views and opinions expressed in this article are the author’s [company’s] own and do not necessarily reflect those of CoinMarketCap.
