{"id":34979,"date":"2025-07-03T07:31:48","date_gmt":"2025-07-03T07:31:48","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=34979"},"modified":"2025-07-03T07:31:48","modified_gmt":"2025-07-03T07:31:48","slug":"bitcoin-and-jpmorgan-will-soar-on-the-back-of-big-bank-stablecoins-hayes","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=34979","title":{"rendered":"Bitcoin and JPMorgan Will Soar on the Back of Big Bank Stablecoins: Hayes"},"content":{"rendered":"<div>\n<p>The premise is driven by Treasury Secretary Scott Bessent\u2019s agenda to engineer a liquidity injection that resembles past Federal Reserve interventions, said Hayes in a lengthy blog post on July 3.<\/p>\n<p>However, this will be done via financial innovation and regulatory tweaks, not overt money printing, he added.<\/p>\n<p>Bessent is \u201cdone getting fluffed,\u201d and it\u2019s time for him to \u201csoak the world with his liquidity juices,\u201d he exclaimed.<\/p>\n<h2>Trillions in T-Bill Buying Power<\/h2>\n<p>Hayes stated that this stealth liquidity injection strategy has two massive beneficiaries: Bitcoin and JPMorgan.<\/p>\n<p>JPMorgan\u2019s stablecoin (<a href=\"https:\/\/cryptopotato.com\/jp-morgan-to-launch-jpmd-coin-on-base-heres-what-you-need-to-know\/\" data-wpel-link=\"internal\">JPMD<\/a>) allows it to digitize deposits, eliminate compliance costs, and earn a risk-free spread by buying US Treasury bills.<\/p>\n<blockquote>\n<p dir=\"ltr\" lang=\"en\">\u201cQuid Pro Stablecoin\u201d is a discussion on how US banks adopting stablecoins can provide $6.8 trillion of buying power for The BBC\u2019s shitty treasuries.<a href=\"https:\/\/t.co\/QHqgZAPv0J\" data-wpel-link=\"external\" target=\"_blank\">https:\/\/t.co\/QHqgZAPv0J<\/a> <a href=\"https:\/\/t.co\/pcejYZ8Urx\" data-wpel-link=\"external\" target=\"_blank\">pic.twitter.com\/pcejYZ8Urx<\/a><\/p>\n<p>\u2014 Arthur Hayes (@CryptoHayes) <a href=\"https:\/\/twitter.com\/CryptoHayes\/status\/1940626633138020690?ref_src=twsrc%5Etfw\" data-wpel-link=\"external\" target=\"_blank\">July 3, 2025<\/a><\/p>\n<\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Additionally, regulatory changes such as the GENIUS Act could effectively hand \u201ctoo big to fail\u201d banks a monopoly on stablecoins, which could lock out fintech firms such as Circle.<\/p>\n<blockquote>\n<p>\u201cThe adoption of stablecoins by TBTF banks creates up to $6.8 trillion of T-bill buying power.\u201d<\/p>\n<\/blockquote>\n<p>Moreover, if JPMorgan converts even a fraction of its deposits into stablecoins, it unlocks hundreds of billions in low-risk, high-margin earnings, potentially doubling or tripling its market cap.<\/p>\n<p>Bitcoin would also benefit because stablecoin issuance creates massive Treasury bill demand without quantitative easing, which suppresses yields and reflates risk assets. The primary cryptocurrency thrives when liquidity expands and rates drop.<\/p>\n<blockquote>\n<p>\u201cThe real stablecoin play isn\u2019t betting on crusty FinTechs like Circle\u2014it\u2019s understanding that the US government just handed TBTF banks the launch keys to a multi-trillion-dollar liquidity bazooka\u00a0 disguised as \u2018innovation\u2019.\u201d<\/p>\n<\/blockquote>\n<h2>Ethereum to Benefit<\/h2>\n<p>The JPMD stablecoin will ride on Base, a layer-2 operated by Coinbase built on top of Ethereum, confirming that the asset will use Ethereum infrastructure.<\/p>\n<p>This positions the protocol as the settlement layer for the new banking liquidity engine.<\/p>\n<blockquote>\n<p>\u201cThis is debt monetization dressed in Ethereum drag,\u201d said Hayes.<\/p>\n<\/blockquote>\n<p>If big banks settle stablecoins on Ethereum, the current industry standard for real-world asset tokenization, demand for the network\u2019s blockspace, layer-2s, and validators increases.<\/p>\n<p>The Ethereum infrastructure is quietly powering the entire play, so it is also likely to benefit, though Hayes didn\u2019t directly address it.<\/p>\n<p>It could also become the next <a href=\"https:\/\/cryptopotato.com\/does-ethereum-have-an-advantage-over-bitcoin-for-corporate-treasuries\/\" data-wpel-link=\"internal\">corporate treasury gold rush<\/a> due to its staking yields, which are not available with Bitcoin, according to analysts.<\/p>\n<p>The post <a href=\"https:\/\/cryptopotato.com\/bitcoin-and-jpmorgan-will-soar-on-the-back-of-big-bank-stablecoins-hayes\/\" rel=\"nofollow\">Bitcoin and JPMorgan Will Soar on the Back of Big Bank Stablecoins: Hayes<\/a> appeared first on <a href=\"https:\/\/cryptopotato.com\/\" rel=\"nofollow\">CryptoPotato<\/a>.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>The premise is driven by Treasury Secretary Scott Bessent\u2019s agenda to engineer a liquidity injection that resembles past Federal Reserve interventions, said Hayes in a lengthy blog post on July 3. However, this will be done via financial innovation and regulatory tweaks, not overt money printing, he added. Bessent is \u201cdone getting fluffed,\u201d and it\u2019s [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-34979","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/34979","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=34979"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/34979\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=34979"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=34979"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=34979"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}