Stablecoins May Slash $7 Trillion in Global Costs—Wall Street Heavyweight Drops Bombshell

Forget waiting for banks to modernize—stablecoins are about to rewrite the rules of cross-border finance overnight.

The $7 trillion efficiency killer

Global payment rails—stuck in the SWIFT stone age—bleed businesses dry with fees, delays, and enough middlemen to fill a stadium. Enter dollar-pegged crypto, settling transactions in seconds for pennies.

Wall Street’s worst nightmare

When even hedge fund veterans like Scaramucci champion crypto’s cost-cutting power, you know the old guard’s days are numbered. Funny how ‘too risky’ becomes ‘mission critical’ once profits are at stake.

The punchline? Banks will still charge you $25 for a wire transfer while pretending blockchain doesn’t exist.

Stablecoins Backed By Treasuries

Circle and Tether, two major players in the stablecoin space, are quietly buying up large amounts of US government debt. According to Scaramucci, Tether now holds more US Treasuries than countries like Germany or Japan. That’s a surprising twist. It means private crypto firms are now important holders of US debt, which could help support the dollar at a time when many countries are looking for alternatives.

He also mentioned that upcoming rules could push stablecoin issuers to hold even more reserves in Treasuries. That WOULD only deepen their connection to the US financial system.

Political Momentum Builds In Washington

While crypto regulation has often been a divisive issue in Washington, the GENIUS Act is starting to change that. A total of 16 Democrats joined Republicans to get the bill through the Senate, brushing aside earlier concerns about US President Donald Trump’s past support of digital currencies.

David Sacks, a senior adviser to TRUMP on crypto and AI, told CNBC he’s confident the bill will keep moving forward. He said the White House expects more support as lawmakers look for ways to keep crypto innovation in the US instead of pushing it overseas.

Scaramucci gave a practical example during his interview. He pointed to New York’s Hunt and Fish Club, where he believes stablecoins could replace credit cards. By doing that, businesses could skip the 2-3% fees charged by payment processors like Visa or Mastercard.

He says this isn’t just a tech upgrade. It’s a way to make payments cheaper and faster for everyday purchases. Wire transfers and card payments rack up billions in fees each year, so stablecoins could be a cheaper option for many people around the world.

This new push for stablecoins is also seen as a way to keep the dollar dominant in global finance. As countries test out their own digital currencies, the US is backing a different approach—letting private companies issue tokens backed by real dollars.

With regulation finally gaining traction, stablecoins might soon play a bigger role not just in crypto, but in the larger financial system.

Featured image from Unsplash, chart from TradingView