Why Bitcoin and JPMorgan Are Primed to Skyrocket Thanks to Big Bank Stablecoins – Hayes Predicts
The crypto and traditional finance worlds are colliding—and the fallout could mint new winners.
Arthur Hayes, crypto's sharpest macro mind, just dropped a bombshell prediction: Bitcoin and JPMorgan are about to ride a wave of institutional stablecoin adoption straight to the moon. Here's why.
The Stablecoin Domino Effect
When banking giants like JPMorgan launch their own stablecoins, it's not just about digitizing dollars. It's a backdoor bull case for crypto's OG asset—and an unlikely boost for legacy finance's top players.
Bitcoin's Institutional Passport
Stablecoins act as the perfect on-ramp. Once big money gets comfortable with blockchain-based dollars, hopping over to Bitcoin is just one volatility-tolerance meeting away. Hayes sees banks becoming unwitting crypto evangelists.
JPMorgan's Two-Way Bet
The irony? Jamie Dimon's infamous Bitcoin skepticism won't stop his firm from cashing in. As stablecoin issuers, banks collect fat fees while 'protecting' clients from crypto's wild swings—Wall Street's favorite hedge.
Final thought: Nothing moves markets like banks discovering new ways to collect rent. This time, even crypto maximalists might cheer them on—before inevitably cursing the 2% transaction fees.
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.
