- The blog says dollar-pegged stablecoins will reinforce U.S. monetary power and drive wider adoption of decentralized finance globally.
- Hayes concludes stablecoins signal a structural shift, bolstering U.S. debt markets and reshaping global monetary flows.
- Get a Year of Fast, Actionable Trade Alerts for 60% Off This Labor Day
Arthur Hayes, co-founder of BitMEX, says dollar-pegged stablecoins could become a central tool for U.S. monetary policy, absorbing trillions in offshore deposits and reshaping global finance.
What Happened: In his blog post on Aug. 27, Hayes argued that U.S. Treasury Secretary Scott Bessent may use stablecoins to redirect Eurodollar flows and Global South retail deposits into U.S. debt markets.
"Quickly, dollar-pegged stablecoin issuers will face an influx of $10 to $13 trillion, and subsequently purchase T-bills," he wrote.
Hayes estimated that alongside Eurodollar flows, deposits from the Global South and eurozone could bring the total addressable market to $34 trillion.
"$10 to $13 trillion of T-bill buying power comes from the dismantling of the Eurodollar system. $21 trillion of T-bill buying power comes from retail deposits of the Global South and Euro-poor-eans. Total = $34 trillion," Hayes wrote.
Also Read: Numerai Secures Up To $500M Commitment From JPMorgan Asset Management
He described stablecoins as "a new tool that allows Bessent to soak up those flows," contrasting them with the Fed's historic role in backstopping offshore dollar markets.
According to Hayes, stablecoins structured as narrow banks would become "price-insensitive buyers of Buffalo Bill Bessent's dogshit paper in [expletive] SIZE."
Hayes added that U.S. tech platforms could accelerate adoption in developing economies.
"The US social media companies will be the Trojan horse that destroys the ability of foreign central banks to control the money supply of their plebes," he wrote, citing the example of WhatsApp integrating wallets.
He tied the argument to broader geopolitical implications, stating, "Bessent will wield his sanctions cudgel widely and violently in order to make sure that dollar-pegged stablecoins bring home capital sequestered in Eurodollars and non-US retail banking deposits."
Hayes concluded that these dynamics point to a structural shift in how U.S. debt is financed, with stablecoins underpinning both global demand for dollars and growth in decentralized finance applications.
Read Next:
Image: Shutterstock
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.