news 
Bitcoin and JPMorgan Will Soar on the Back of Big Bank Stablecoins: Hayes
In a recent blog post, BitMEX founder Arthur Hayes has made a bold prediction that stablecoins issued by large US banks will become a powerful tool for the government to finance its debt. According to Hayes, this move will have a profound impact on both Bitcoin and JPMorgan’s market performance.
The idea is driven by Treasury Secretary Scott Bessent’s agenda to engineer a liquidity injection reminiscent of past Federal Reserve interventions. However, this time around, it will be done through financial innovation and regulatory tweaks rather than overt money printing.
Hayes believes that this stealthy liquidity injection strategy has two massive beneficiaries: Bitcoin and JPMorgan. The reasoning is that JPMorgan’s stablecoin, JPMD, enables the bank to digitize deposits, eliminate compliance costs, and earn a risk-free spread by purchasing US Treasury bills. This move would provide $6.8 trillion of buying power for US treasuries.
Furthermore, regulatory changes such as the GENIUS Act could grant “too big to fail” banks a monopoly on stablecoins, effectively locking out fintech firms like Circle. This would allow these major banks to create up to $6.8 trillion in T-bill buying power.
Moreover, if JPMorgan were to convert even a fraction of its deposits into stablecoins, it could unlock hundreds of billions in low-risk, high-margin earnings, potentially doubling or tripling its market cap.
Source: cryptopotato.com
