Why the World’s Largest Asset Manager Believes Tokenized Dollars Are a Strategic Asset

In a recent commentary, BlackRock asserted that U.S.-backed stablecoins—such as USDC and USDT—could significantly reinforce the dollar’s global supremacy, particularly as the digital economy matures. Far from being just another blockchain innovation, stablecoins are rapidly becoming a strategic tool for economic influence, capital allocation, and monetary control.

Stablecoins as the Digital Rails of the Dollar System

Unlike volatile cryptocurrencies like Bitcoin or Ethereum, stablecoins are designed to track the U.S. dollar in a 1:1 ratio. Backed by fiat reserves and U.S. Treasuries, assets like USDC (issued by Circle) or USDT (issued by Tether) are increasingly being used as payment instruments across borders—especially in emerging markets plagued by inflation or currency instability.

From BlackRock’s perspective, this trend builds a parallel digital layer to the existing dollar infrastructure—extending dollar usage without the need for physical cash or access to U.S.-based banks. In effect, stablecoins act as digital extensions of U.S. monetary power, embedding the dollar into global transaction flows.

Regulatory Tailwinds: The “Stable Genius Act” Redefines the Playing Field

In 2025, the U.S. Congress passed the Stable Genius Act, which classifies fiat-backed stablecoins not as securities but as payment instruments. The act mandates that issuers hold 100% reserves in short-term U.S. Treasuries or cash equivalents, prohibits the offering of interest, and subjects them to strict audits.

This regulatory clarity does more than reduce compliance friction—it provides stablecoins with a legal, secure, and scalable framework that institutional investors can trust. As a result, companies like BlackRock, which already manage Treasury-backed tokenized products, stand to benefit directly from increased demand.

Stablecoins Are Now Tightly Interwoven with U.S. Treasury Markets

According to data from MarketWatch, Tether currently holds over $98.5 billion in short-term U.S. government bonds, accounting for approximately 1.6% of the total T-bill market. Circle, too, holds a vast amount of reserves in Treasuries, some of which are managed directly through BlackRock’s liquidity solutions.

As stablecoin issuance expands, so does the demand for Treasuries—effectively creating a new class of buyers that suppresses short-term yields while deepening the Treasury market. For Washington, this is not merely about liquidity; it’s about embedding the U.S. financial system into the global digital infrastructure.

The European Central Bank Warns of “Digital Dollarization”

Not everyone sees this evolution as benign. The European Central Bank (ECB) has issued repeated warnings about the rise of dollar-backed stablecoins within the Eurozone. ECB policymakers argue that widespread adoption could lead to a form of “digital dollarization”, reducing the efficacy of the ECB’s monetary policy and marginalizing the euro.

In response, the EU is fast-tracking the rollout of a Digital Euro, designed to offer a euro-native alternative to USDC and USDT. The rivalry underscores that stablecoins have become instruments of geopolitical competition, not just fintech convenience.

BlackRock’s Dual Role: Infrastructure Provider and Strategic Catalyst

Behind the scenes, BlackRock is not only commenting on the potential of stablecoins—it is actively shaping their infrastructure. Through its BUIDL fund, BlackRock provides tokenized access to U.S. Treasuries, offering a regulated, institutional-grade reserve layer for stablecoin issuers.

By embedding its products into the heart of the stablecoin ecosystem, BlackRock is effectively becoming a financial backbone of the dollarized digital world. Combined with its regulatory engagement, this gives BlackRock strategic leverage over the evolution of global payments architecture.

Stablecoins Are Becoming a Monetary and Strategic Force

Stablecoins have moved far beyond speculative crypto. They are now integral to the global financial plumbing, offering speed, programmability, and monetary stability. For emerging markets, they provide access to dollar-backed stability; for institutions, they unlock efficient on-chain liquidity; and for the U.S., they extend the hegemony of the dollar into the decentralized age.

BlackRock is well-positioned to capitalize on this transformation—acting as both catalyst and custodian in the rise of tokenized finance. As demand for regulated, dollar-pegged digital assets accelerates, the intersection of macroeconomics, blockchain, and global policy becomes more clear: the next battleground for currency dominance is programmable, borderless, and blockchain-native.