Catenaa, Tuesday, March 12, 2025-The US Department of Housing and Urban Development (HUD) is exploring the use of blockchain and stablecoins to manage and track grant funding.
According to a ProPublica report from March 7, officials have discussed using blockchain technology to monitor grants for social housing, with a particular focus on the Community Planning and Development office, which oversees billions of dollars supporting affordable housing and homeless shelters.
A potential pilot program could see HUD experiment with paying grantees using a stablecoin, possibly starting in one of the department’s offices before expanding to others.
Two officials familiar with the matter suggested that the blockchain initiative could serve as a test case for broader government adoption of cryptocurrency and blockchain technology.
However, the proposal has faced criticism within the department. Some staff members described the project as “dangerous and inefficient,” citing concerns over the added volatility of stablecoin payments. One official argued the plan was overly complicated and unnecessary.
Despite the internal debate, a HUD spokesperson clarified that the department has no immediate plans to implement blockchain or stablecoin technology, noting that any educational efforts are separate from actual deployment. The idea aligns with broader efforts by the Trump administration to embrace cryptocurrency, with figures like Elon Musk supporting blockchain’s potential to reduce federal spending.
