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.
Nevertheless, this can be completed by way of monetary innovation and regulatory tweaks, not overt cash printing, he added.
Bessent is “completed getting fluffed,” and it’s time for him to “soak the world together with his liquidity juices,” he exclaimed.
Trillions in T-Invoice Shopping for Energy
Hayes said that this stealth liquidity injection technique has two large beneficiaries: Bitcoin and JPMorgan.
JPMorgan’s stablecoin (JPMD) permits it to digitize deposits, get rid of 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 large to fail” banks a monopoly on stablecoins, which may lock out fintech companies akin 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 lots 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 large Treasury invoice demand with out quantitative easing, which suppresses yields and reflates threat belongings. The first cryptocurrency thrives when liquidity expands and charges drop.
“The actual 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 trip on Base, a layer-2 operated by Coinbase constructed on high 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 large banks settle stablecoins on Ethereum, the present business commonplace for real-world asset tokenization, demand for the community’s blockspace, layer-2s, and validators will increase.
The Ethereum infrastructure is quietly powering your entire play, so it’s also more likely to profit, although Hayes didn’t straight handle it.
It may additionally develop into the following corporate treasury gold rush as a result of its staking yields, which aren’t obtainable with Bitcoin, in response to analysts.
Binance Free $600 (CryptoPotato Unique): Use this link to register a brand new account and obtain $600 unique welcome supply on Binance (full details).
LIMITED OFFER for CryptoPotato readers at Bybit: Use this link to register and open a $500 FREE place on any coin!