The premise is driven by Treasury Secretary Scott Bessent’s 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 “done getting fluffed,” and it’s time for him to “soak the world with his liquidity juices,” he exclaimed.
Trillions in T-Bill Buying Power
Hayes stated that this stealth liquidity injection strategy has two massive beneficiaries: Bitcoin and JPMorgan.
JPMorgan’s stablecoin (JPMD) allows it to digitize deposits, eliminate compliance costs, and earn a risk-free spread by buying US Treasury bills.
“Quid Pro Stablecoin” is a discussion on how US banks adopting stablecoins can provide $6.8 trillion of buying power for The BBC’s shitty treasuries.https://t.co/QHqgZAPv0J pic.twitter.com/pcejYZ8Urx
— Arthur Hayes (@CryptoHayes) July 3, 2025
Additionally, regulatory changes such as the GENIUS Act could effectively hand “too big to fail” banks a monopoly on stablecoins, which could lock out fintech firms such as Circle.
“The adoption of stablecoins by TBTF banks creates up to $6.8 trillion of T-bill buying power.”
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.
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.
“The real stablecoin play isn’t betting on crusty FinTechs like Circle—it’s understanding that the US government just handed TBTF banks the launch keys to a multi-trillion-dollar liquidity bazooka disguised as ‘innovation’.”
Ethereum to Benefit
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.
This positions the protocol as the settlement layer for the new banking liquidity engine.
“This is debt monetization dressed in Ethereum drag,” said Hayes.
If big banks settle stablecoins on Ethereum, the current industry standard for real-world asset tokenization, demand for the network’s blockspace, layer-2s, and validators increases.
The Ethereum infrastructure is quietly powering the entire play, so it is also likely to benefit, though Hayes didn’t directly address it.
It could also become the next corporate treasury gold rush due to its staking yields, which are not available with Bitcoin, according to analysts.
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