US Housing Dept Eyes Blockchain & Stablecoins for Grant Payments

The U.S. Department of Housing and Urban Development (HUD) is reportedly exploring the use of blockchain technology and stablecoins for grant payments and fund tracking. According to ProPublica, internal discussions have taken place about testing blockchain within the department, with a potential pilot program in one of its offices before broader implementation.

Discussions on Blockchain for Grant Tracking

HUD, which oversees social housing programs, has considered using blockchain to track grants. ProPublica, citing internal documents and meeting recordings, reported that a project was discussed where the Community Planning and Development (CPD) office would use blockchain to monitor funding for one of its grantees.

Some officials believe this could be a step toward adopting blockchain technology across various government agencies. However, internal reactions have been mixed. One official described the plan as “dangerous and inefficient” in a memo, arguing that the proposed system would be unnecessarily complicated and that stablecoin payments could introduce volatility.

Stablecoin Payments Under Consideration

In addition to tracking funds on a blockchain, HUD officials reportedly discussed testing stablecoin payments for grants. The department has not committed to the idea but explored whether digital currency transactions could streamline payments.

During a follow-up meeting, opinions were divided. Some attendees suggested the department could consider payments in cryptocurrency, while others stated that any digital transactions should be backed by a stable currency. A finance official reportedly mentioned that blockchain could eventually be implemented across HUD, starting with the CPD office.

A department spokesperson, however, stated that HUD currently has “no plans for blockchain or stablecoin,” clarifying that discussions were for educational purposes rather than policy decisions.

Federal Interest in Blockchain and Digital Currencies

The reported discussion at HUD fits into parallel discussions about blockchain and digital assets in the federal government. Speaking at the White House Crypto Summit on March 7, U.S. Treasury Secretary Scott Bessent also noted that regulators would think a ‘lot about the stablecoin regime’ to maintain the U.S. dollar holding as the global reserve currency.

Furthermore, President Donald Trump has expressed his support for the crypto industry. There has been more than one report that HUD’s blockchain discussions are being spun by budget-cutting proposals from people like Elon Musk who have championed the use of blockchain for government.

While no official policies have been announced, the discussions indicate a growing interest in digital financial tools within federal agencies.