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 put up on July 3.
Nevertheless, this will likely 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 acknowledged that this stealth liquidity injection technique has two huge 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 massive to fail” banks a monopoly on stablecoins, which may lock out fintech companies resembling 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 danger 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 trip 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 massive banks settle stablecoins on Ethereum, the present trade customary for real-world asset tokenization, demand for the community’s blockspace, layer-2s, and validators will increase.
The Ethereum infrastructure is quietly powering all the play, so it is usually more likely to profit, although Hayes didn’t instantly handle it.
It may additionally turn out to be the subsequent corporate treasury gold rush as a consequence of its staking yields, which aren’t out there with Bitcoin, in keeping with analysts.
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