Treasury Secretary Scott Bessent champions dollar dominance across global markets and stablecoins
Treasury Secretary Scott Bessent defended the U.S. economy and the dollar’s global role, citing that the U.S. dollar is on one side of 89.2% of foreign-exchange transactions and that most stablecoins are dollar-pegged. He pointed to strong income, employment and growth indicators and rejected criticism that Treasury bond buybacks aim to suppress yields as the 10-year Treasury yield reached 5%.
Why It Matters
Bessent’s remarks address concerns about rising Treasury yields and changing international payment systems by reiterating the dollar’s centrality in global finance and the growing use of dollar-linked stablecoins. Those points frame U.S. economic resilience in debates over market liquidity, debt management and the influence of alternative digital payment platforms.
Key Facts
- Dollar share of FX transactions: 89.2% of foreign-exchange transactions include the U.S. dollar
- Stablecoin peg: The overwhelming majority of stablecoins are pegged to the U.S. dollar
- Economic indicators cited: Record median household income, historically low official poverty rate, continued employment growth
- Atlanta Fed GDP estimate: 5.1% annualised estimate for third-quarter GDP (Atlanta Fed)
- 10-year Treasury yield: Reached 5%
Treasury Secretary Scott Bessent sought to counter recent negative assessments of the U.S. fiscal outlook by emphasizing the dollar’s persistent dominance in global markets and the prevalence of dollar-pegged stablecoins. Posting on X, Bessent highlighted that the U.S. dollar is on one side of 89.2% of foreign-exchange transactions and stressed that most stablecoins are tied to the dollar, using those metrics to argue for durable foreign demand for U.S. assets.
Bessent also pointed to domestic economic measures to support his defense, citing record median household income, a historically low official poverty rate and ongoing employment gains. He referenced the Atlanta Fed’s 5.1% annualised estimate for third-quarter GDP as another indicator of economic strength.
The comments came amid scrutiny of Treasury operations after the 10-year yield climbed to 5%. The Treasury has been repurchasing longer-term bonds, a practice Bessent described as intended to improve market liquidity and manage debt-maturity profiles. Critics have accused the buybacks of aiming to suppress yields; Bessent rejected that characterization and noted the Treasury market’s scale, which the source described as worth more than $30 trillion.
Bessent also framed Saudi Arabia’s exit from the China-backed mBridge cross-border digital currency platform as evidence reinforcing dollar dominance, citing reporting in the Financial Times. Saudi authorities countered that their participation ended after a planned proof of concept was completed in May 2025 and that the mBridge project continues elsewhere, making the withdrawal largely symbolic rather than indicative of a collapse of the broader initiative.
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