The Digital Dollar Project (DDP) introduced a technological modernization plan for the U.S. dollar infrastructure, aimed at maintaining its dominant global position and reserve currency status in the Web3 era.
DDP analysts released a strategic report outlining recommendations for the digital transformation of the U.S. dollar. The report emphasizes infrastructure development, the integration of stablecoins and tokenized deposits, and ensuring the dollar’s global leadership in an evolving financial landscape.
The study highlights the critical role of interoperability and scalability of Web3 solutions, the integration of digital assets with existing payment systems, and ensuring their usability for point-of-sale transactions, payroll, and international payments.
According to DDP analysts, stablecoins and tokenized assets are already reinforcing the U.S. dollar’s global influence. Over 99% of all circulating stablecoins are dollar-pegged, far surpassing any other currency. This strengthens demand for U.S. Treasury securities, with stablecoin issuers like Circle and Paxos emerging as significant holders of U.S. Treasuries, comparable in volume to central banks.
By late 2024, over $200 billion worth of dollar stablecoins were in circulation, while annual transaction volumes exceeded $5 trillion. Leading examples include USDC (Circle), PYUSD (PayPal), and USDP (Paxos), backed by U.S. Treasuries and other highly liquid assets, targeting retail and cross-border payments.
Tokenized deposits are also gaining traction among major U.S. banks. JPMorgan’s Kinexys platform processes an average of $2 billion daily, with a total transaction volume exceeding $1.5 trillion. The platform enables institutional clients to tokenize deposits and settle transactions 24/7/365 through blockchain infrastructure.
Key advantages of these solutions:
- eliminating trapped liquidity caused by the asynchronous operating hours of traditional financial systems;
- reducing credit and operational risks through atomic settlements via smart contracts;
- enhancing system resilience by leveraging distributed ledger technology;
- lowering costs and increasing transparency in financial transactions.
The report notes that, in the absence of a U.S. central bank digital currency (CBDC) prohibited under the Executive Order of January 23, 2025, the private sector is taking the lead in U.S. dollar modernization. In March 2025, the DTCC, the U.S.’s largest clearinghouse, endorsed ERC-3643, a token standard for real-world asset (RWA) tokenization. Meanwhile, major banks such as JPMorgan and Bank of America continue to expand their digital asset initiatives.
