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Bitcoin and JPMorgan Will Soar on the Back of Big Bank Stablecoins: Hayes
A bold prediction has been made by BitMEX founder Arthur Hayes, who believes that stablecoins issued by large US banks will become a powerful tool for the government to finance its debt. This development is expected to have a profound impact on Bitcoin and JPMorgan’s market performance.
According to Hayes, this stealthy liquidity injection strategy will have two massive beneficiaries: Bitcoin and JPMorgan. The latter’s stablecoin, JPMD, allows it to digitize deposits, eliminate compliance costs, and earn a risk-free spread by buying US Treasury bills.
Hayes argues that the adoption of stablecoins by Too Big To Fail (TBTF) banks, such as JPMorgan, will unlock up to $6.8 trillion in low-risk, high-margin earnings for these institutions. This could potentially double or triple JPMorgan’s market capitalization. Bitcoin would also benefit from this development, as the increased liquidity and suppressed yields create an environment where it thrives.
Moreover, Hayes emphasizes that the real stablecoin play is not betting on fintech firms like Circle, but rather recognizing that the US government has inadvertently handed TBTF banks the “launch keys” to a multi-trillion-dollar liquidity bazooka disguised as innovation.
Source: cryptopotato.com
