US Treasury Secretary Scott Bessent has recently defended the US economy and the dominant position of the US dollar by referencing stablecoin adoption rates, US-dollar-denominated trade data and multiple macro indicators, seeking to hedge external concerns over surging government debt yields and changes in the international payment system.

Bessent reposted and highlighted data amplified by conservative commentator Lawrence Kudlow on social platform X, stating that the US dollar remains on one side of 89.2% of foreign exchange transactions, and the vast majority of stablecoins are pegged to the US dollar.

He also mentioned record median household income in the US, historically low official poverty rates, continuous employment growth, and the Atlanta Fed’s estimate of a 5.1% annualized growth rate for gross domestic product (GDP) in the third quarter to illustrate that the fundamentals of the US economy remain solid.

Rising US Treasury Yields Spark Controversy

Bessent made these remarks at a time when US Treasury yields have climbed to multi-year highs, with the 10-year US Treasury yield once touching 5%. Against this backdrop, the US Treasury’s ongoing repurchases of longer-dated bonds have drawn criticism from some commentators, who accuse it of attempting to suppress yields.

Bessent denied such claims, stating that the buyback operations aim to improve market liquidity and manage debt maturity profiles, rather than intervene in the over $30 trillion US Treasury market. He emphASIzed that the Treasury’s operational logic is to optimize the debt structure instead of artificially controlling yield movements.

Saudi Arabia’s Exit from mBridge Viewed as Symbolic Positive Signal

Bessent also cited a Financial Times report on Saudi Arabia’s withdrawal from mBridge, saying this development helps consolidate the dominant status of the US dollar.

mBridge is a cross-border digital currency platform backed by China, designed to explore new pathways for cross-border payments.

However, Saudi Arabia stated that its participation concluded after completing the established proof-of-concept in May 2025. Meanwhile, the platform continues to expand in other regions. Therefore, Saudi Arabia’s exit is more like a symbolic victory for Washington rather than a sign that the whole project is collapsing.

US Dollar Narrative and Market Focus Points

Against the backdrop of elevated US Treasury yields and peRSIstent attention to fiscal deficits and debt sustainability, Bessent attempts to link the US dollar, stablecoins and US economic data to strengthen market perception of the resilience of the US financial system.