The premise is pushed by Treasury Secretary Scott Bessent’s agenda to engineer a liquidity injection that resembles previous Federal Reserve interventions, mentioned Hayes in a prolonged weblog publish on July 3.
Nonetheless, this might be accomplished by way of monetary innovation and regulatory tweaks, not overt cash printing, he added.
Bessent is “accomplished getting fluffed,” and it’s time for him to “soak the world along with his liquidity juices,” he exclaimed.
Trillions in T-Invoice Shopping for Energy
Hayes said that this stealth liquidity injection technique has two huge beneficiaries: Bitcoin and JPMorgan.
JPMorgan’s stablecoin (JPMD) permits it to digitize deposits, eradicate compliance prices, and earn a risk-free unfold by shopping for US Treasury payments.
“Quid Professional Stablecoin” is a dialogue on how US banks adopting stablecoins can present $6.8 trillion of shopping for energy for The BBC’s shitty treasuries.https://t.co/QHqgZAPv0J pic.twitter.com/pcejYZ8Urx
— Arthur Hayes (@CryptoHayes) July 3, 2025
Moreover, regulatory adjustments such because the GENIUS Act may successfully hand “too huge to fail” banks a monopoly on stablecoins, which may lock out fintech corporations corresponding to Circle.
“The adoption of stablecoins by TBTF banks creates as much as $6.8 trillion of T-bill shopping for energy.”
Furthermore, if JPMorgan converts even a fraction of its deposits into stablecoins, it unlocks tons of of billions in low-risk, high-margin earnings, doubtlessly doubling or tripling its market cap.
Bitcoin would additionally profit as a result of stablecoin issuance creates huge Treasury invoice demand with out quantitative easing, which suppresses yields and reflates threat property. The first cryptocurrency thrives when liquidity expands and charges drop.
“The true stablecoin play isn’t betting on crusty FinTechs like Circle—it’s understanding that the US authorities simply handed TBTF banks the launch keys to a multi-trillion-dollar liquidity bazooka disguised as ‘innovation’.”
Ethereum to Profit
The JPMD stablecoin will experience on Base, a layer-2 operated by Coinbase constructed on prime of Ethereum, confirming that the asset will use Ethereum infrastructure.
This positions the protocol because the settlement layer for the brand new banking liquidity engine.
“That is debt monetization wearing Ethereum drag,” mentioned Hayes.
If huge banks settle stablecoins on Ethereum, the present trade normal for real-world asset tokenization, demand for the community’s blockspace, layer-2s, and validators will increase.
The Ethereum infrastructure is quietly powering the complete play, so it is usually prone to profit, although Hayes didn’t straight deal with it.
It may additionally develop into the subsequent company treasury gold rush resulting from its staking yields, which aren’t obtainable with Bitcoin, in accordance with analysts.
The publish Bitcoin and JPMorgan Will Soar on the Again of Massive Financial institution Stablecoins: Hayes appeared first on CryptoPotato.